Senior police officer Mustansar Feroz said that Basharat and Irfan had caught two children, aged between 9 and 13, for allegedly stealing water melons from their shop.
"Both men not only subjected the children to severe torture but also paraded them naked in the street," Feroz said.
He said the accused also made a video of the children and used abusive language. On the complaint of the father of one of the children police registered an FIR against Basharat, Irfan and their accomplice and arrested them.
"They will be produced before a court on Monday for physical remand," Feroz said, adding the police have also recovered the cell phones the suspects used for making the children's video.
Rights activists called upon the government to pursue the case and ensure exemplary punishment to the culprits.