Lakhwinder Singh (47) opened fire from his SLR rifle at around 4:45 am in the Victoria estate area here. No casualty was reported in the incident, police said.
Singh, posted at the residence of AAP candidate Major General Suresh Khajuria (retd), was suffering from "hallucination and delusion", police said.
"We got him medically examined and as per the medical report, he was suffering from hallucination and delusion," Pathankot SSP Vivek Sheel Soni said, adding that he could also be suffering from schizophrenia.
Singh fired close to 20 shots, police said, adding that he shot at vehicles parked outside the residences in the area.
"Four vehicles were damaged. Moreover, the bullets also hit the windows and walls of some of the houses," said the SSP. The incident sparked panic among residents.
Singh was soon overpowered and handed over to the police. He was not under the influence of alcohol, police said.
The Gurdaspur Lok Sabha by-poll, which will take place on October 11, was necessitated following the demise of BJP MP Vinod Khanna in April this year.
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