He laid down his life on this day in the Battle of Basantar during the Indo-Pakistan war of 1971, a defence spokesman said.
A fierce tank fight was fought between the Poona Horse Regiment of Indian Army and 13 Lancers of Pakistani Army on the banks of Basantar river.
2Lt Arun Khetarpal was severally wounded during the action and was asked to abandon his tank.
He refused to do so and gallantly fought destroying several enemy tanks.
2Lt Khetrapal was awarded highest gallantry decoration in the country the Param Vir Chakra.
The ceremony was attended by a galaxy of people associated with 2Lt Arun Khetrapal including his brother Mukesh Khetrapal and his course mates from the three services as well as serving and veteran officers, the spokesman said.
Lt Gen Surinder Singh, GOC-in-C Western Command, laid the wreath to pay homage to the gallant martyr.
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