The driver Fayaz Khan from Narwal area of the city was arrested on Thursday afternoon and the tourist P Samant "rescued" after his friends lodged a complaint, police said on Friday.
They said a group of eight tourists from West Bengal had hired Khan's Tata Sumo for a Kashmir tour for Rs 25,000 but on reaching Pahalgam, he refused to take them to any other destination.
Khan allegedly snatched Rs 5,000 from the tourists, drove off with Samant in his SUV and forcibly kept him at his house, police added.
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