Police chased down and caught one of a three-member gang which was trying to make away with cash and valuables from the house of a hotelier at Bank Colony in the city on Saturday morning.
The police are on the look out for the two others who are at large.
They managed to nab Shahid and admitted him to a hospital for treatment as he was under the influence of drugs.
Hotelier Nazeer Ahmed said in a complaint to the police that the gang gained entry into his house at 9.20 am on Saturday, wielding lethal weapons. At gunpoint, they forced the residents into a room in the house and demanded a ransom of Rs 50 lakh.
They later took away 120 gm of gold ornaments, besides the hotelier's son Sameer and son-in-law Shah Jahan as hostage, the complaint said.
The gang cut off the CCTV connections and tied the hands and legs of the family members. The miscreants threatened to kill them en masse if Rs 50 lakh was not paid to them and if neighbours were alerted.
The family managed to arrange the money by contacting acquaintances on the phone.
By night, the gang collected Rs 25 lakh each from the homes of two of Ahmed's acquaintances - one in Chitradurga and another in Davangere - and sped away towards Channagiri.
When police tried to stop the car in which the gang was travelling at the Santhebennur checkpost, they sped away.
The car stopped at a road barricade. The miscreants came out of the car and started running away. The cops managed to catch hold of Shahid while the others ran away in the cover of darkness, said Chitradurga Superintendent of Police K Parashuram.
The police have rescued Sameer and Shah Jahan, who were held hostage.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks