Pawan Kumar and three of his associates - Sudhir Kumar, Lokesh Kumar and Bhagwan Dass - were arrested for allegedly "kidnapping" Pawan and demanding Rs 5 lakh from his father, they said.
On Saturday, the three informed Pawan's father, Devkinandan, that his son has been kidnapped and the kidnappers were demanding Rs 5 lakh to release him, they said.
Police said they cracked the case when Devkinandan, a resident of Sector 10A here, complained about receiving ransom calls on his landline.
Police found that it was actually Sudhir who made the calls to Pawan's residence using the latter's mobile number.
During the investigation, it was found that Pawan was the mastermind behind the 'kidnapping' drama as he had fallen into debt during his stint as a contractor in a company, informed Joint Commissioner of Police Crime.