24-year-old engineer Simran Sodhi was returning home with a female friend from Hotel Ashoka's F-Bar when the accident took place at around 2 pm.
The two labourers injured in the accident were taken to AIIMS, where they were declared to be in a stable condition.
Deputy Commissioner of Police HGS Dhaliwal said that Sodhi has been arrested and charged under sections 279 (rash and negligent driving) and 337 (causing hurt).
Quoting a senior police officer, news reports reveal that the medical tests conducted on the US educated youngster confirmed that he was under the influence of alcohol.
The Sodhi's friend was let off after questioning. The police also questioned three other labourers sleeping on the footpath, who were unhurt in the accident.
Similar incidents have been reported in the past from across the country. Apart from the famous BMW case, a shocking hit-and-run case was reported from Bangalore, wherein a driver of a Honda Accord knocked down pedestrians, killing 4 people and injuring 1.