Hartejbir Singh was kidnapped outside his house in Manjit Nagar area of the city.
Police said four persons have been arrested in connection with the kidnapping.
The child was rescued by police from a dera in Dirba town of Sangrur, they said.
Two persons today came to house of the boy to deliver a ransom letter in which they demanded Rs 30 lakh. But police officials who were keeping a tab on activities of suspicious people around the house of boy nabbed them.
They said the accused were unemployed and taking drugs. They committed the crime to make quick bucks.
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