The fishermen, identified as Arockiasamy and Johnson from Pamban, were hospitalised, police said, adding, their condition was stable.
The bullet allegedly fired by the Coast Guard is suspected to have been shot off target and hit the duo, who were fishing at nearby Devil's island yesterday.
The stray bullet without gun powder, pierced the upper arm of Arockiasamy and then hit Johnson in his upper limb, police said. However, it was removed from the limb by Johnson himself.
Denying any such incident involving its personnel, the ICG said, "no fisherman has been fired upon by any CG ship in Palk Bay."
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Tamil Nadu IT Minister M Manikandan, meanwhile, told PTI over phone that the matter would be taken up with the Centre to ensure that such incidents did not recur.
The Coast Guard while denying any firing by its personnel said that the fishing crew in question was involved in "unauthorised" paired trawling.
A Coast Guard vessel on patrol off the International Maritime Boundary Line (IMBL) in Palk Bay "was routinely" investigating fishing boat 'Jehovah Jireh', its statement said.
The vessel was investigating the boat "for paired trawling on November 13, 2017 at about 1440 hrs," the statement said. Paired trawling is not authorised in the state of Tamil Nadu.
During the chase, the fishing boat "also rammed" into the ICG ship and was stopped and boarded after 50 minutes, it said, adding, the boat crew was interrogated for "running away."
It was also cautioned for non-stopping for security checks, the statement said.
"No fishermen has been fired upon by any CG ship in Palk Bay.. Further, rubber bullets are not used by Indian Coast Guard Ships.. No injury or bruises have been inflicted by any Coast Guard personnel by firing or otherwise firing incident as alleged by the fishing boat Jehovah Jireh."
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