Police Commissioner R N Dhoke said Inderjit Singh Gola, the factory owner who had gone underground, had been arrested.
Divisional Commissioner of Patiala V K Meena initiated a probe into the incident, an official spokesperson said.
Meena and other officials visited the site of the incident in Mushtaq Gunj here and took stock of the situation.
He also visited the CMC Hospital where two injured persons had been admitted for treatment.
Later, Meena chaired a meeting of senior officials of the district administration and police, the spokesperson said.
Meanwhile, the rescue operation continued for the third day today. However, no body was recovered.
The chance of recovering more bodies was very bleak, officials said.
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