The two were arrested in a case filed in September last year.
Two young men, including a student at an engineering college in Karnataka's Mangaluru, were arrested by the National Investigation Agency (NIA) on Thursday, over alleged -links with the terrorist group ISIS.
The NIA said it arrested the two men after carrying out searches at six locations in Karnataka's Dakshina Kannada, Shivamogga, Davanagere and Bengaluru districts. The two were arrested in a case filed in September last year.
The arrested ISIS operatives have been identified as Reshaan Thajuddin Sheikh and Huzair Farhan Baig - both residents of Karnataka. Reshaan was a final-year engineering student, sources said. Two others were arrested in the case earlier.
"The case relates to a conspiracy hatched by the accused to further the terror activities of the Islamic State (IS), a banned terrorist organization, and to endanger the unity, security and sovereignty of the country," the NIA said in a statement.
The investigation has revealed that the accused Maaz Muneer radicalized his close associate and collegemate Reshaan Thajuddin, said the NIA.
"The two arrested accused, Reshaan Thajuddin Sheikh and Huzair Farhan Baig, received funds from their ISIS handler through crypto wallets for furthering the terrorist activities of the Islamic State," the agency alleged.
"As part of their larger violent and disruptions designs, they also indulged in arson and targeting of vehicles and other establishments, such as liquor shops, godowns and transformers," said the NIA.
The agency claimed to have seized digital devices and incriminating documents during searches conducted at the houses of the accused and the suspects.