Police on duty in a known drug dealing area of Accrington saw a man lean into a car briefly and then leave.
Blackburn magistrates heard when police stopped the car they discovered wraps of heroin and crack cocaine.
When they searched the car driver’s home they discovered further evidence of drug dealing.
Jabbar Ali, 49, of Barnes Street, Accrington, pleaded guilty to possessing heroin and crack cocaine and being concerned in the supply of both drugs.
He was committed on bail to be sentenced at Burnley Crown Court on January 5.
The magistrates ordered the preparation of a pre-sentence report.
Graeme Tindall, prosecuting, said police saw a man lean into a BMW driven by the defendant before leaving.
The car was stopped and the officers found six wraps of heroin and four wraps of crack cocaine.
“A search of his property revealed further evidence of drug dealing and analysis of this revealed the usual indications of drug dealing,” said Mr Tindall.
Peter King, defending, said it was accepted the case would go to the crown court to be sentenced.
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