Mr Sidhu, who was arrested near Karnal in the northern Indian state of Haryana on Tuesday, has been remanded to seven-day police custody.
The police told Indian media that he was waiting for someone to pick him up at the time of his arrest.
"He was changing the location since the time he fled away, after the Red fort incident," Sanjeev Kumar Yadav, DCP Special cell told media on Tuesday.
The police is investigating Mr Sidhu's role in the alleged violence that took place at the iconic Red Fort and other parts the capital during the farmers' tractor rally last month.
"Delhi Police Special Cell team has arrested Deep Sidhu, the main accused in violence at Red Fort and other parts of Delhi on 26 January. His pictures are in the public domain. We had announced Rs 1 lakh reward on his arrest. Further probe is underway," Chinmoy Biswal, Delhi Police PRO told ANI.
According to police reports, Mr Sidhu and his associates' activities on the day lead to the injuries sustained by over 140 police personnel and loss of government property.
Mr Sidhu had been uploading videos ever since he reportedly disappeared after the alleged Red Fort incident.
He later took to social media to prove his "innocence" and claimed that he was "targeted and labelled as a traitor for fighting for farmers' rights".
In a video uploaded last week, he slammed farmer union leaders for distancing themselves from the alleged Red Fort incident and said that it was their democratic right to protest at the Red Fort.
The video that was shared on Facebook last week has garnered nearly 1.5 million views, over 31K comments, 16K shares and around 90K impressions.
Mr Sidhu's arrest has evoked mixed reactions in the community in Australia.
eep Sidhu is a Punjabi film star known for his lead role in the movie “Jora 10 Numbaria” Source: Supplied
While some called him, a "youth leader" others condemned his actions and alleged that he is part of a "conspiracy" aimed at defaming the ongoing agitation.
Leaders of farmer unions protesting against the Bhartiya Janata Party-led Indian government's farm laws had earlier alleged that Mr Sidhu and government agencies were behind the alleged rampage at the Red Fort on the day of the tractor rally.
Ever since the incident, Mr Sidhu's old photos with Prime Minister Narendra Modi and BJP MP Sunny Deol have been doing the rounds on social media.
Manvir Kaur, one of the main organisers of a protest held at Melbourne's Federation square last Sunday, demanded a high-level investigation into the events that lead to the violence on 26 January.
"Deep Sidhu's involvement during this protest has divided our community into two sections. But I feel that we should not jump ahead of ourselves and call him anti-national, especially when there is so much uncertainty surrounding the events that took place on 25th and 26th January," she said.
"I am hopeful that this protest would continue in high spirits, and the police must probe all events and arrests, including Deep Sidhu's for the sake of justice and preservation of human rights."
When asked about Deep Sidhu's arrest, Sydney-based Sikh community representative Amar Singh said, "we strictly condemn the arrest of Sikh activists and journalists in India."
"As a democratic nation, India must listen to its citizens and farmers. The world is watching how farmers are being treated," he said.
Another community activist Harpreet Singh 'Khalsa' from Melbourne said that he is concerned about the recent arrests and the "police oppression" against the protestors.
"The news of the arrest of Deep Sidhu, other protesting farmers and activists is disturbing and concerning. Regardless of our internal differences, we all, including farmer unions, should unite against injustice," he said.
"Human rights activist Nodeep Kaur has also been detained. It's terrible to know through social media the way she is being treated."
Gurvinder Singh, the National Director of United Sikhs' Australia chapter, has also shared his views with SBS Punjabi.
"As concerned citizens, we must ensure that there is no trial by media and as any prisoner of conscience, Deep Sidhu should be provided all allowable resources to present his case and seek justice," Mr Singh said in a statement.
"Fundamental human rights are to be recognised and respected for every citizen of a nation. Every individual has the right to be heard, represented and avail legal recourse. This is the underlying bedrock of any democracy," read a part of the statement.
Hundreds of thousands of farmers continue to stay at Delhi's doorsteps in protest against the three agricultural reforms. While the government claims these laws will liberate farmers and reduce the need for mediators, critics of the three laws say it could lead to the exploitation of farmers at the hands of the big corporations.
