The incident has come to light on Sunday morning.
The deceased have been identified as Manjula (28) and hers on, aged 6 years. One more person by name Krishnamurthy, said to be a relative of Manjula has been admitted with burns to SNR hospital of the city. His condition is stated to be serious.
While it is being suspected as a premeditated murder, the motive for the act is yet to be unearthed. The bodies were lying at the house even by Monday afternoon. Police said that the bodies would be sent for postmortem once they were identified.
Meanwhile, the body of the house owner Narayanappa (60) was found hanging from a tree in the nearby mangrove. Police had inquired him with regard to unnatural deaths only on Sunday.
It is being said that he might have committed suicide frightened by police inquiry or that those who committed double murder might have killed Narayanappa and later hanged him.
The entire incident has taken a new turn with this mysterious death.
Police have registered two separate cases. Dy SP K B Kudachi, CPI T M Shivakumar and PSI R Venkatesh visited the spot.