According to police, the family members of Dara Singh, a resident of the Sindhi Gate market area of Palam, approached police after he failed to return home last night with no information as to his whereabouts.
"As per the complaint, Dara runs a jewellery shop and is also a property dealer.
"(Dara's son) Pradeep told us that last night his father received a call on his mobile phone after which he told his family that he would return in a while and immediately left home," said a police official.
But Pradeep said he later received a call on his mobile phone where the caller told him that Dara was with him and safe, police added.
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No ransom has, however, been sought so far, giving the impression that the alleged kidnappers are probably acquainted with Dara, police said.
Dara's family is claiming that an acquaintance had called him on the mobile phone saying he would show him a property, police said.
A case of kidnapping has been registered in the matter with investigators uncertain as to a likely motive as no ransom demand has been made so far.
Senior west district police officers had to rush to the spot to assure protesters that Dara will be found soon.