Pandi, Karuppasamy and Muthiah, facing murder charges, were killed by the gang led by Ettappan alias Surya while walking on a road near Peraiyur, police said.
The gang members who came in a car first rammed the vehicle against them and as the victims fell unconscious, they got down and hacked them.
While two persons died on the spot, one died on the way to a hospital, police said.
Karthikeyan, Inspector with T Kallupati police station, on receiving information about the murders on his mobile phone, immediately rushed to the spot and managed to nab Surya after a hot chase.
A few other members of the gang managed to escape into nearby forest and a search was on for them, police said.
