Dissentowner does make a good point though, even if this happened in a far away place like India there should be more media coverage than this is currently getting. Animal attacks often take precedence over other worldly stories.
How often do you read about people getting killed by lions, sharks. or crocodiles? Pretty much after every attack unless it happens in some third world nation. And those attacks happen more often, when compared to people getting killed by spiders, which is quite rare. Especially if this story is true that spiders "took over a town" and led to the deaths of two people.
The fact that this has not been covered by CNN, BBC, or any other true global news network does lend credence that this may either be more of a fictitious story, or at least in part false.
Until a more official network picks up on this story I hesitate to believe it in its entirety.
Edit: I guess it was picked up by CNN, but they do claim a lot of the story to be likely based on rumors.
http://www.cnn.com/2012/06/04/world/...arm/index.html