The police arrested Arjun Mutteppa Basaragi (31) of Kankanawadi and Fakkirappa Ramesh Talawar (28) of Hirekumbi for sharing provocative messages on WhatsApp.
They had spread rumors about the death of a young man who had killed himself in Gokak on Sunday.
They have been booked for spreading false messages and creating enmity between communities.
A body of Shivakumar Balaramappa Uppar (19) was found in Hire Bagewadi village on Sunday, after he ended his life in the APMC Yard.
Shivakumar Balaramappa Uppar (19) was found in the APMC Yard on the outskirts of Hire Bagewadi village. Some traders who found the body informed the Police.
The young man was a Bajrang Dal activist, the police said.
Bajrang Dal members have alleged that it was a murder and not suicide and have sought a detailed inquiry, reports the Hindu.