Police said Nagarajan (29) and his friend Kasimayan (28) tried to escape but the gangsters chased them and hacked them to death in broad daylight.
Their friend was injured when he tried to protect them. He has been admitted to a hospital.
Police said the victims used to drink and play carrom in the evening in the area. They had also picked up quarrel with the local people several times and petty cases had been filed against them.
Nagarajan's father said the gang members had come to his house last night and asked him to reprimand his son.
Special teams have been formed to nab the gang members.