BJP's alliance party Shiromani Akali Dal (SAD) named Avtar Singh as senior deputy mayor and Avinash Jolly as deputy mayor of the holy city.
BJP's Rajesh Honey and Sukhminder Pintoo, were also in race for the mayoral post, but the party made the decision in favour of Arora.
Earlier in the day, the recently elected 65 councillors were administered oath by the divisional commissioner.
The ceremony was attended by BJP MP Navjot Singh Sidhu, SAD MP Rattan Singh Ajnala, Punjab ministers Anil Joshi and Bikram Majitha.