The urea, intended for agricultural use, was obtained illegally for industrial use, and the accused was seeking to export it, according to an official statement released on Tuesday.
Urea is useful as a fertiliser and feed supplement, as well as a starting material in the production of polymers and pharmaceuticals.
It is a colourless, crystalline chemical that melts at 132.7 degrees Celsius (271 degrees Fahrenheit) and decomposes before boiling.
A team of agriculture department authorities raided Aditya Industries, Windson Chemicals Pvt Ltd, and Shivkrupa Hotel in the district after receiving a tip.
According to police, 2,952 bags of neem-coated urea weighing 1.42 lakh kg and valued at Rs 88.37 lakh were confiscated from six separate cars from these places.
According to the officials, the company's owner, Vinod Patel, planned to export these bags via containers.