Chanting anti-government slogans, they assembled in Panjtirthi area and demanded a one-time settlement package for them.
Carrying placards, over 200 refugees of 1947, 1965 and 1971 Indo-Pak wars tried to march towards the Raj Bhawan but were prevented by police.
Later, 40 of them courted arrest, officials said.
The state government had submitted a proposal to the Centre for the rehabilitation package but it was yet to be approved by it, PoK Refugees Front General Secretary Rachhpal Singh Chib said.