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Priest Reji Yohanan, vicar of St Peters Church at Thuvayoor South here, and church’s trustee Suraj and secretary Mathew were those arrested, they said.
They were later released on bail, police said.
This is the second such instance of an arrest of a church priest for conducting a funeral with large people in attendance in Kerala since the government imposed curbs to contain the spread of the deadly virus.
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A case has been registered against the three persons under section 188 (disobedience of government order) of the Indian Penal Code and the Kerala Police Act section 118E (causing danger to the public), police said.
On Monday, a priest, who conducted a holy mass at a church in Chalakudy in which over 100 people took part, was arrested.
He was also later let off on bail.