A man, aged 66, has been arrested in Barking
Detectives watched a man meet two other suspects in Upney Lane on Monday.
He moved a number of boxes from their vehicle into his own car.
Officers then approached and detained the 66-year-old before carrying out a search of the car.
They found 96kg of white powder, believed to be ketamine, in the boxes. The class B drugs are estimated to be worth £3,840,000.
The suspect was then arrested on suspicion of possession with intent to supply controlled drugs.
The other two men, aged in their 30s, were also arrested for drugs offences.
All of them remain in custody at a north London police station.
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