Palvinder Singh, 32, was arrested from Mukarba Chowk on August 28, DCP of Special Cell, Rajiv Ranjan said.
On a tip-off, a trap was laid to nab Singh. He was spotted carrying a bag in which 7.5 kg of high grade opium was found, the DCP said.
Palvinder is an addict of opium and was in touch with suppliers in Uttar Pradesh, Haryana and Delhi. He was trafficking opium from UP and supplying it to local peddlers in Amritsar and other parts of Punjab, police said.