The incident occurred this evening when a group of five students visited the beach. Two of them, T Ashitha (19) and S Praveen (20), hailing from Vijayawada, waded into the Bay and drowned, Machilipatnam Rural Sub Inspector Umamaheswara Rao said.
The locals tried to save the duo but their efforts went in vain, the officer said, adding their bodies were fished out with the help of local fishermen.
A case under relevant sections of the IPC was registered and investigations were on, Rao said.
"The body of 25-year-old Macharla Sunil, a physical trainer in a local private school, has been fished out of the lake", said Rajaiah, Circle Inspector of Dharmasagar.
Constable P Srujan (30) is feared drowned and rescue operations will resume tomorrow, Rajaiah added.