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The two accused Feni and Binil Binu were travelling in Rahul's car when they were taken into custody from Thiruvananthapuram's Thaicadu, said police.
The KPCC has advised Congress-led civic bodies not to give funds for the event.
Aryadan Shoukath organised the rally in Malappuram on November 3 ignoring KPCC's order.
This is the first protest against Nava Kerala Sadas in the state.
The CM alleged that a group of people against the LDF government are trying to hide the government's developmental activities from the public.
The district collector has approved setting up a stage 100 metres from the Freedom Square.
The Collector denied the permission saying the venue is booked for Nava Kerala Sadas, the State government's outreach programme, on November 25.
The fraud came to light when a farmer in Pulpally, Rajendran Nair (60), committed suicide on May 30 after the bank authorities ‘repeatedly neglected’ his complaints regarding the fraud.
The multi-crore loan scam at the bank in Wayanad came to light in May after a farmer committed suicide.
The IUML national general secretary has agreed to deliver the keynote address in a seminar discussing the 'Role of Cooperative Sector in the Development of Kerala'.