Ramu Poddar, 29, had gone to Ankit Metals in Friends Colony on Sunday to collect money on behalf of his employer Satya Narayan Bhutani.
The driver hid the money in his house in Shahdara and later on went to an underpass in Kasturba Nagar and inflicted wounds upon him.
"He injured himself in the neck and left shoulder with a knife to concoct the robbery story," Deputy Commissioner of Police Nupur Prasad told IANS.
Poddar told police that four bikers robbed him of the money and mobile phone at knife point.
Poddar confessed to his crime and said that he was in need of money. He was arrested and the money was recovered from his house.
(With inputs from IANS)