Lalaji was arrested on May 3, 1907 for creating “turmoil” in Rawalpindi. He was put in Mandalay jail for six months and was released on November 11, 1907.
After his return, Lala Lajpat Rai, led the Punjab protests against the Jalianwala Bagh massacre and the Non-Cooperation Movement. He was arrested several times. He disagreed with Gandhiji's suspension of Non-Cooperation movement due to the Chauri-Chaura incident, and formed the Congress Independence Party, which had a pro-Hindu slant.