Police said the three students were from Guntur district.
Three engineering students were arrested on Wednesday for allegedly transporting marijuana from Araku Valley to Visakhapatnam in Andhra Pradesh.
Police seized 10 kg of marijuana, three cell phones and a new Ford car from them which they used to carry the cannabis.
"The students Ch Rahul Reddy, K Sai Sumanth and B Sai Kiran hail from Guntur district," Kothavalasa Circle Inspector S Srinivas Rao said.
He added that the students were addicted to luxuries and smuggled marijuana to make money easily.