According to the police, the accused were arrested after the parents of the girls gave a complaint to the police yesterday.
Those arrested have been identified as Charanjeet Singh, who is the driver of the car and resident of Tilak Nagar area, and his helper Kulivinder, police said.
Police claimed that the duo are not known to have been involved in any other crime but during interrogation they revealed that two girls were molested.
Initially they suspected that girls were not well. When they enquired with the girls, they broke down and narrated that they were repeatedly molested by the driver and his helper.
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The parents of the girls immediately approached police and an FIR was registered at Rajouri Garden police station against the school cab driver.
Family told police that they had hired the cab around two months back and only the two children travelled by the cab.
Police said the cab, in which Charanjeet ferried children to a nursery school, was his personal vehicle and was not attached with the school. It was hired by the girls' parents on monthly rent basis.