The contraband was being transported from Rambha in Ganjam district to Khurda, the police said after preliminary inquiry.
The students also alleged that the college is yet to procure new books for its library, despite collecting Rs 150 from each student for the purpose.
The police, however, are keeping a strict vigil on the situation.
The Colours will be presented to the AAD by President Ram Nath Kovind during a ceremonial parade.
He further stated that the project will be resumed soon.
Police recovered the cash as the trio confessed of committing the crime.
The deceased were identified as Narayan Nahak and his mother Sajani Nahak.
A resolution was also passed in the Assembly last year.
Thousands of people from Ganjam and its adjoining Kandhamal district depend upon Berhampur station for their onward journey.
Jailor Bivendu Bhuyan said he was found unconscious in the morning.
Forces would be conducting an anti-terror mock drill in the sea.