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Emergency services were called to Indian Aroma in Woodford Avenue, Gants Hill, at about 9pm on Friday.
Five people, three women and two men, were injured in the incident.
Two of them, a man and a woman, remain in a life-threatening condition, the Metropolitan Police said.
It is also believed there are two further victims who left the scene before officers arrived, the force added.
Efforts remain ongoing to identify them.
Two people, a 15-year-old boy and 54-year-old man were arrested on Sunday on suspicion of arson with intent to endanger life and remain in police custody, the force said.
CCTV footage seen by the PA news agency appears to show a group of people with their faces covered walk into the restaurant before pouring liquid on to the floor.
Seconds later, the inside of the restaurant is engulfed in flames.
The footage also appeared to show a man running out of the building with his clothing on fire.
Detective Chief Inspector Mark Rogers, of the Met’s central specialist crime north unit, said: “While we have made two arrests, our investigation continues at pace so we can piece together what happened on Friday evening.
“I know the community are concerned and shocked by this incident.
“I would urge anyone with any information or concerns to come forward and speak to police.”
Anyone with information is urged to contact the Met via 101, quoting 7559/22AUG. If you wish to remain anonymous, speak with Crimestoppers on 0800 555 111.
Published: by Radio NewsHub
Written by: Radio News Hub
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