The students, studying in the eighth standard at a private school, did not return home yesterday after school hours.
The parents had lodged a complaint with Pallapatti police, who are investigating.
Meanwhile, police received information that two girls jumped down from the fourth floor of a restaurant at Agrahara second street this morning, in which one student died on the spot, they said.
The other seriously injured student has been admitted to the government hospital here, police said.