The Punjab Police and Special Weapons and Tactics (SWAT) team launched a search operation at Gurdaspur on October 5, after locals reported of suspicious activity.
Two armed people in black dress aroused suspicions for roaming around in the Dera Baba Nanak sector area.
The city is approximately 250 kilometres awy from Pakistan.
This comes a day after Border Security Force (BSF) opened fire following a suspected infiltration at Chakri post of Punjab's Gurdaspur sector.
Villages along the international border have been put on high alert after the headquarters of the 46 Rashtriya Rifles was attacked by terrorists on a late October 2 night at Baramulla in Jammu and Kashmir.