They said the three accused were detained from Kasaragod.
The two victims- Naafir from Thalassery and Fahim from Kozhikode- were staying in a lodge at Attavar near here.
After committing the crime the accused allegedly buried the duo in a vacant plot in Kasargod.
The victims had recently returned from Gulf to Kasaragod via Bangalore. They were reported missing for several days, and they might have been murdered about four days back, though the incident came to light only last evening police said.