Vaibhav Dhondu Gondhale (26) from Thane and Nandakumar Laxman Pavaskar (30) of Khed in Raigad district were arrested at Poladpur in Raigad district, about 45-km from the hill station in Satara district. They were brought back to Mahabaleshwar in the evening.

The Maharashtra police have launched a hunt in Satara, Pune and Raigad to track down the remaining gang members and their leader, Paresh Sadashiv Ambule.

The six youths from Khed taluka in Raigad district had recently burgled the Nadkaon branch of Batut Bank and stole Rs three lakh in cash and 20 kg gold. They were staying at Mahabaleshwar hotel since October 16. The Kerala police team arrived at Mahabaleshwar after receiving a tip off about the gang's whereabout.

The team, accompanied by the driver of a car hired by the gang members to reach Mahabaleshwar from Bangalore, reached the hotel around 9 am.

The Kerala police noticed the gang members standing near the reception desk at the hotel and tried to chase them. However, the gang members fled outside the hotel and sped away in various directions in separate vehicles, said the in-charge of Mahabaleshwar police station S V Hankare.

Hankare maintained that the Kerala police had not sought the cooperation of Mahabaleshwar police before going to the hotel. ``The Kerala police informed the Mahabaleshwar police about the incident around 10 am. Immediately, a wireless message was sent to the Satara police control room which, in turn, alerted the control rooms of Raigad and Pune rural police as well as the Pune police commissionerate.

All the roads linking the three districts were barricaded and vehicles plying on them were checked. Vaibhav and Nandakumar's vehicle was intercepted at Poladpur and they were arrested by a Raigad police team, he said.

Officials from Pune rural police control said checking of all vehicles passing on Pune-Satara Road started shortly after they received a wireless message from the Satara police around 2 pm.