The two had been arrested for the alleged rape and murder of a five-year-old girl at Namgo village in the district, the police said.
The mob yesterday overpowered the police personnel at the Tezu police station and pulled the two accused -- Sanjay Sobar and Jagdish Lohar of Assam -- out of the lockup.
The crowd then stripped the men, dragged them through the streets and beat them to death, the police said.
The body of the girl, who had been missing since February 12, was found near a tea garden, a few kilometres from the village, on Sunday.
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The police claimed the two accused had confessed to the crime.
Three policemen including the in-charge of the Tezu station and a woman sub- inspector were suspended and the SP was transferred for their "inefficiency" in dealing with the matter, an official release said here today.
Lohit district's deputy commissioner has promulgated prohibitory orders under section 144 CrPC restricting the movement and assembly of more than three people at any one time in the Tezu township area.
Khandu also ordered a magisterial enquiry into the episode.
"We are citizens of a great country who abide by the law enshrined in the Constitution. Our laid down rules and regulations do not allow us to take the law in our hands," Khandu said, appealing to the people to maintain peace.
The chief minister, who described the rape and the mob action as "barbaric and inhuman", expressed solidarity with the family members of the minor.