"We arrested Gowtham Sudarshan and Ashish Pal today and they were produced before Sriperumbudur Judicial Magistrate court," Kundrathur Police Inspector Ruban said.
"The duo were granted bail by the court," he told PTI.
The dog was taken to a veterinary hospital for treatment and is doing well, police said.
Gowtham Sudarshan, a final year MBBS student of a private medical college, flung the dog from the terrace of a building here and the act was video allegedly recorded by his friend Ashish Pal.
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The duo were booked for cruel treatment meted out to an animal under IPC sections 428 and 429 and Prevention of Cruelty to Animals Act (Sec 11 (1-a). Subsequently, they were arrested today.
Rubin said the dog luckily survived and was taken to a veterinary hospital. "It has suffered fractures in its front and rear legs. It is being treated."
"It is nothing short of a miracle that the dog survived," he added.
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Meanwhile, police said the private medical college today suspended Gowtham Sudarshan and Ashish Pal, both MBBS final year students.
The college has also formed a panel to look into the allegations against its students.
College authorities were unavailable for comment.