Lal Singh (32) had crossed the border in 1999 after which he was arrest by Pakistani officials and lodged in Lahore's Kot Lakhpat Jail for two years from 2008 to 2010.
Singh was however released by Pakistani officials along with 129 others in June 2010, his younger brother Hari Singh told reporters.
However, Singh's ordeal did not end after his release and he was admitted to the Vidyasagar Psychiatric Hospital, Amritsar with the help of the Red Cross.
Luck smiled on them today when Punjab Police personnel arrived at the Kotwali police station at Khargone along with Lal Singh, station in-charge, Chatrapal Singh Parihar said.
Punjab police personnel later handed over Lal Singh to his family members, who later accompanied him to his village, where Singh received a warm welcome by villagers.