A group of six masked youth pretending to be militants entered the house of one army Jawan, Bagh Hussain, in Krishnaghati area of Poonch on Sunday night, they said.
They threatened Hussain with dire consequences if he did not give them gold and money, they said adding the youth were carrying toy guns and rifles.
However, the army jawan, who had come to his home on leave, took out his rifle following which the fake militants, escaped.
Bagh and his neighbour, however, caught the leader of the gang who has been identified as Jasvir Singh, a local resident.
He was handed over to police, they said adding a case was registered against them and a hunt has been launched to arrest the rest who managed to escape.