The girl's body was found at Ottinene near Byndoor earlier this week and later it was confirmed that she was murdered, police said.
A police team led by Superintendent of Police Annamalai last night arrested the two, identified as Sunil and Akshay, both aged 19 and cousins, residing at Yedthare in Udupi district, they said.
Police said Sunil was the main culprit and Akshay was charged with misguiding the police. Sunil had followed the girl on the day of the incident when she was coming back from college and strangled her with her uniform veil in a deserted area and took her to the nearby woods with the intention of sexually assaulting her.
Inspector General of Police Amrit Paul said the state DG-IGP had announced a reward of Rs 3 lakh to the police team for cracking the case.
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