"On a tip-off, police arrested the youths, aged between 21 to 25, from Peerjain village of this district," Fatehgarh Sahib police chief Gurmeet Singh Chouhan said here.
The SSP claimed that with the arrest, the police have succeeded in thwarting an attempt to revive terrorism in the state.
Those arrested are Karamjeet Singh, Sarwan Singh, Jatinder Singh, Labh Singh, Dharam Singh, Rana Partap Singh and Kashmir Singh, he said, adding that most of them belonged to border district of Gurdaspur and Tarn Taran in the state.
Chouhan said that the youths were getting funds from their accomplices settled in New Zealand, UAE, Uttar Pardesh and Bihar to revive terrorism in the state.
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Besides, the gang had planned to eliminate some leaders associated with certain political outfits for their role in 1984 riots.
Police have started a hunt to nab their accomplices.
One of their accomplices, NRI Gurjeet Singh of New Zealand has constituted a gang for carrying out terrorist acts in Punjab, Chouhan said.
The gang was also allegedly planning to eliminate a Hindu right wing activist.