Lawyers for Abul Koyair, 20, and Mohammed Abdul Kahar, 23, said they deny any involvement in terrorism.
Police have continued to search their home after Friday's dawn raid that involved more than 250 police officers, some in chemical protection suits, storming their house in east London.
Mr Kahar was shot in the shoulder during the raid, and some British newspapers have alleged that he was shot by his brother.
But lawyers for both men rejected the reports.
He was moved from Royal London Hospital to Paddington Green police station where he will face questioning.
Police sources said specific intelligence suggested the house in Forest Gate might have been used to make a toxic bomb for an attack in Britain.
London Metropolitan Police anti-terror chief Peter Clarke said officers had acted on intelligence following weeks of surveillance.
"He says there's absolutely not a word of truth in any of it," the wounded brother's lawyer Kate Roxburgh told reporters.
"He says the police are not going to find anything because there is nothing to find."
His brother's lawyer, Julian Young, said earlier his client had also denied he was involved in any terrorism plot, adding: "To date I have seen no evidence showing that he has been."
Police said they are still concentrating their search on the suspects' house in the ethnically-mixed area with a sizeable Muslim population, after searching the men's workplaces on Saturday.
Officers are looking for "some form of viable chemical device" that could kill -- a conventional bomb laced with toxic material, a police source told Reuters.
Police have been given permission to hold both men until Wednesday.
Scotland Yard refused to comment on the incident which is now subject to an independent investigation.
British firearms police have been under the spotlight since they shot dead an innocent Brazilian man, Jean Charles de Menezes, in the weeks following last year's suicide attacks. They wrongly identified him as a suicide bomber.
Asan Rehman, a spokesman for a family arrested from a neighbouring house but then freed, told Reuters the two brothers are Muslims of Bangladeshi origin.
Police have said that nothing suspicious was found in an initial search of the house and that neighbours are not in danger.