The accused were detected by the villagers in Saikul after the entire area went on a high alert following the disappearance of some children over the last few days.
Late on Tuesday, the villagers first thrashed the two men and later handed them over to the police. This is the first instance of outsiders allegedly abducting and eating up children in Manipur.
Preliminary inquiries have revealed that they had so far abducted six children, who were later murdered, according to the police. They confessed having eaten up the dead bodies, an officer said.
Police sources said there were six-armed members in the gang hailing from Assam. They had rendered services as hired assassins as well. Four of them have escaped.
The police have approached language experts to assist in the interrogation.
The two accused were badly injured and were in a hospital.
All police stations in the state have been alerted to be on the lookout for the four fugitives.