Those arrested have been identified as Onkar Singh, Jagran Singh, Amritpal Singh, Kuldip Singh, Jasbir Singh, Amanpreet Singh and Manpreet Singh, Ludhiana Police Commissioner RN Dhoke told reporters here.
Three of those arrested belonged to Amritsar, he said. All the seven were arrested from Ludhiana where they planned to hold a meeting, Mr Dhoke added.
Three pistols and 33 live cartridges were recovered from their possession, he said.
The Ludhiana police commissioner said the leader of the group has been identified as Surinder Singh Babbar, who is settled in United Kingdom and was providing them financial assistance and weapons.
Mr Babbar was selecting targets through social media, according to the police.
During preliminary investigations, it was revealed that those opposed to "radical views" were on their hit list, Mr Dhoke said. Their motive was to disturb peace and communal harmony of the state, the police said.