Media reports say that the terror suspects were arrested in the northern city of Brescia in Italy on Saturday, Nov 21.
The two men are accused of providing logistical support for the 2008 terror attacks in India's financial capital.
Italy"s ANSA news agency quotes police sources as saying the two men used a money transfer agency to send funds for the attacks.
This money is believed to have been used to pay for an Internet phone account.
Thus, the two are accused of aiding and abetting as well as illegal financial activity, the agency reports.