The accused were identified as Ali Mohmmad alais Ishaq, a former member of Al-Barq terror outfit, Sohial Ahmed and Pradeep Kumar, they said.
Three members of an inter-state narcotic smuggling gang have been arrested. Cash worth rupees 13 lakh and one kilogram of heroin was recovered from their possession, Superintendent of Police (SP) Jammu City (South) Vinay Sharma told reporters here.
The accused were nabbed by police during routine checking of vehicles at Valmiki Chowk, the SP said.
Sharma said Ali, a Pakistan trained terrorist, was running a cable network in Kupwara after surrendering. Later, he came in contact with the Pakistan drug lobby through social media and turned to narcotic smuggling.
The drugs had been smuggled in from the Indo-Pak border in north Kashmir's Kupwara district and were being transported to Rajasthan, he said.
A case has been registered at Gandhinagar police station, Sharma said.
He said the NIA has been informed about the case due to the terror and border smuggling angle involved.
(With inputs from agencies.)