The victim identified as Gurshan Singh was on a holiday with his parents. His body was found near Melbourne airport by council workers, after a search operation was launched after the toddler was reported missing for home on Thursday, Mar 4.
Australian authorities have appealed to citizens to maintain calm as they try to track down the killers
Warning against jumping to conclusion, Deputy police commissioner Sir Ken Jones said that the incident is being treated as a homicide.
He said that police would do everything possible to find out the reason behind murder.
"We are not ruling anything in or anything out," he said.
"If foul play has taken place we will do everything in our power to find out what has taken place and to bring people to justice," he added.
Members of Indian Communities while expressing shock over the killing of the three-year-old Gurshan has condemned the incident .
Harpreet Kaur the mother of Gurshan is studying in Australia.