India's Supreme Court Friday ruled that the two Italian marines, accused of killing two Indian fishermen off the coast of the southern state of Kerala, will be tried in a special court in the national capital as "it's a federal crime".

A two-judge bench, headed by the Chief Justice of India, Altamas Kabir, directed the central government to set up the special court in consultation with the apex court to try the two accused who are currently on bail in Kerala, rejecting a plea by the Italian government to transfer to Rome the case.

The court also asked the central government to get the two marines -- Massimiliano Latorre and Salvatore Girone -- shifted to the Indian capital and keep them under the control of the Italian Embassy.

The case has sparked diplomatic row between India and Italy.

India accuses the two Italian marines of killing two of its fishermen last February. The two marines, then guarding an Italian oil tanker, MV Enrica Lexie, claims that they shot the two fishermen from on board the vessel, mistaking them for pirates.

Italy claims that they should be tried in a court in Rome as the incident happened in international waters while India says that the accused must be tried in this country as the shooting took place in its waters.

Last month, the Supreme Court had allowed the two marines to go home for Christmas for two weeks, after the Italian Embassy gave guarantee of their return. The duo have now returned to India.