Unknown persons travelling in a cycle hurled a grenade at the house of prominent businessman Biren Agarwal on J P Road in Sepon Market around 8.45 AM killing the two persons there, police said.
Biren Agarwal's younger brother Situ Agarwal and their driver Dimbeswar Bhuyan were killed on the spot in the explosion as they were going out of the house, the officer said.
Superintendent of Police Bijoy Kuligram has rushed to the area.
The locals claimed that the proscribed ULFA-Independent, which is active in the area, had recently demanded extortion money from the Agarwal family who refused to make the payment.