At about 8.43 pm yesterday, 108 ambulance service received a call from a person, who was speaking in incoherent manner, that a bomb had been planted at the Palace.
Police found out that Bontha Yellaiah, resident of Moula Ali area, had made the call, said Deputy Commissioner of Police (South Zone) V Satyanarayana.
Police didn't panic as the entire Palace premises had been already thoroughly checked and was being watched through 150 CCTV cameras, he said.
Bontha Yellaiah appeared to be suffering from an acute mental disorder, the DCP said.
In view of his health, police were thinking of admitting him in a hospital, the DCP said, adding that as of now he has been handed over to his family members.
The dinner at Falaknuma Palace, attended by Ivanka Trump, PM Modi and Telangana chief minister K Chandrashekhar Rao along with a host of other dignitaries, had been hosted as part of the Global Entrepreneurship Summit (GES) 2017.