The girls, both aged nine, had left school on Thursday when the man approached them and lured them to his house saying he had a large quantity of biscuits and sweets there.
He then allegedly sexually harassed them.
The girls managed to run out of the house, went home and informed their parents, who then filed a police complaint.
The man was arrested last evening, produced before a judicial magistrate and remanded to 15 dayss judicial custody.
The two girls were today admitted to the Government Hospital, Sathyamangalam, provided some treatment and then sent home, police said.