Bavaliya who was returning from Delhi on Thursday received an SMS on his mobile phone demanding Rs 3 crore, police said adding the MP from Rajkot informed the state DGP and also Vicchiya police station at Jasdan.
Vinchhiya police swung into action and tracked down the mobile number to one Muldas Meswania (42) and detained him.
However, he was later released as Bavaliya, a former teacher, refused to take any action against him as he was mentally unstable and also Bavaliya's former student, police said.
Bavaliya was not available for comment.