He was brought by road from the national capital in an ambulance around 4 am, escorted by teams of armed Delhi Police personnel, a senior Tihar jail official said in Delhi.
He was taken to the Guru Nanak Dev Hospital to undergo medical examination, Amritsar Deputy Commissioner of Police Parmpal said.
All formalities regarding his transfer were completed after Delhi government approved his shifting and the Punjab government agreed to lodge Bhullar in the prison here.
Bhullar is kept in a barrack cordoned off by special jail staff and the assistant superintendent of jail has been given responsibility to oversee the arrangements.
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Bhullar is said to be quite unwell, both physically and mentally. A ward in the jail hospital has been kept reserved for him, Parmpal said.
He is reportedly suffering from schizophrenia and has a disturbed state of mind.
Behind bars for the past two decades following his conviction in the case, Bhullar is undergoing life imprisonment after the Supreme Court commuted his death sentence. He was sentenced to death by a designated TADA court on August 25, 2001.