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The accused, identified as Sumith Hegde, Yathish Poojary, and Praveen Poojary, were arrested on October 11. A Maruti Swift car used for the crime was also seized, police said.
The banners erected by Vamanjoor Friends about the Sharaddotsava had been torn by miscreants on October 8 night, police added.
A complaint had been filed in the Manglauru Rural police alleging that the act was carried out to hurt the religious sentiments of the community.