Panic erupted outside Hari Niwas Palace, Jammu late on Friday night when four youth allegedly fired gunshots in air.
Police claimed it has arrested three youth in this connection, while manhunt has been launched to nab the other youth.
They said that four youth, who were on their way out from the bar at Hari Niwas, fired gunshots in the airs outside the hotel late on Friday night.
Later, the youth fled from the spot in an SUV and a motorcycle, police said.
Police have nabbed three accused and registered against them a case under section 366 (endangering life or personal safety of others), 188 (disobedience to order duly promulgated by public servant), and 34 (acts done by several persons in furtherance of commission intention) of RPC and Arms Act, added police.
The accused apprehended by police have been identified as Ishant Raina, Vivek Singh and Manik Nayat.