Gagandeep Singh (25), a resident of Amargarh near Malerkotla, was caught by police inside the bungalow of the industrialist while posing as a "human bomb" and threatening to blow himself off. He has been sent for medical treatment, police said.
Gagandeep, wearing electric condensers around his body, claimed that he belonged to a terror outfit and demanded a ransom of Rs 5 crore from the family members, police said.
SSP Mandeep Singh Sidhu said the youth seemed to be mentally disturbed as he was going through a marital dispute and had lost his job as a driver.