Acting on a tip off, Parmveer Singh was intercepted by police when he was riding his motorcycle on the outskirts of the city near Chehertha area, police said.
Besides heroin, Rs five lakh cash was also seized from him, Police Commissioner Jatinder Singh Aulakh said.
The accused had links with drug dealers and had purchased the heroin to further sell it in the local areas.
Aulakh said Rs five lakh cash recovered from him was part of his income generated from one day sale of the drug.