Police arrested one person and recovered 290 boxes of illicit liquor from his possession in Delhon area of the city on Friday evening.
Police said while driver of the tempo Sukhvir Singh was arrested, his accomplice Jagroop Singh, a manager of a local marriage palace, was yet to be arrested.
According to information, the accused were carrying the liquor in a tempo and a car.
Sources said a diary had also been recovered by police in which names of some politically influential persons were written. The police were investigating the matter, they said.
Amandeep Brar, station house officer (SHO) at the Dehlon police station, said a case had been registered against driver Sukhvir Singh and Jagroop Singh under various sections of the Excise Act. A hunt to arrest Jagroop was on, Brar added.