Two persons were arrested and over five kilograms of charas, worth lakhs of rupees in grey market, were recovered from their possession in Kupwara district, police said here on Friday.

Acting on a tip-off, police searched the house of suspected drug peddler Ashiq Ahmad Ganie in Khunbal-Handwara on Thursday evening and arrested Nazir Ahmad Shah and Bashir Ahmad Payar after 5.250 gms of charas and Rs. 8600 in cash were recovered from them, police said.

However, Ganie, also the kingpin, managed to escape and a hunt has been launched to nab him, they said, adding, his house was searched several times earlier.