Two suspected terrorists with links to the banned Islamic State (IS) outfit were arrested from Karnataka's Shivamogga, police said.
Another terror suspect is on the run, the police said.
The police alleged that the three suspected terrorists had explosives and planned to carry out bombings across the state.
A case has been registered against the three, identified as Maaz Muneer Ahmed (22) from Mangalore, Syed Yasin (21) from Shivamogga, and Shariq (24) from Teerethahalli who is on the run, under various sections of the Indian Penal Code (IPC) and also the Unlawful Activities Prevention Act (UAPA).
According to the police, all three wanted to further the cause of ISIS in India.
Shariq and Maaz were out on bail after being arrested in a terror graffiti case in Mangalore in 2020.
"Intense probe is going on about their activities. They are from Shivamogga and Tirthahalli with links to Mangaluru," Karnataka Home Minister Araga Jnanendra said, as quoted by news agency PTI.
Shivamogga was under the spotlight earlier this year after a Bajrang Dal activist was hacked to death in February. In August, clashes broke out in the city over a poster of Hindutva ideologue Vinayak Savarkar, resulting in a 20-year-old garment store employee getting stabbed.
According to the police, the Islamic State links of the three accused came to light during interrogation of suspects in connection with the stabbing.
Further investigation into the matter is underway.