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The arrested persons are identified as Naveen Somaiah Naik and Venkatesha Naik from Shirali area.
According to police, the accused, suspected to be Hindu activists, assaulted each other with a key chain.
Later, Naveen Somaiah lodged an FIR with Murudeshwara police station on Thursday claiming that he was assaulted by persons of another religion. However, during investigation, the police found that it was a false case.
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Murudeshwar and Bhatkal Rural Police jointly grilled the accused persons to find out their motive.
The accused wanted to make it a big issue and create communal tension, the police said.
Further investigation is on.
(With inputs from IANS)