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Thirty-two SIM box devices, which can use 960 SIM cards at a time, were seized from them, they said.
Ibrahim Pullatti (36), hailing from Malappuram in Kerala and Gautam B Vishwanathan (27) from Tirupur in Tamil Nadu, had placed the 32 devices at six areas of the city to carry out their illegal activities, police said in a statement.
“Their activities not only caused revenue loss to the government but also posed a serious security threat to the nation,” the statement said.
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Police have not ruled out the possibility of the involvement of many others in the racket and have begun a probe.
Bengaluru Police Commissioner Kamal Pant announced a reward of Rs 30,000 to the team which nabbed the two men.