The incident occurred in Shrivihar under Chandrasekharpur police station limits in the city this afternoon.
As per reports, the accused reached the shop owned by one Rama Chandra Behera and looted cash by threatening the shop-owner with a pistol which was later found to be a toy gun.
The miscreant also attacked Behera with a sharp edged weapon when he tried to resist him.
However, the passers-by nabbed the miscreant and tied him to a pole. They also beat him black and blue.
Later, the miscreant was handed-over to Chandrasekharpur Police.
A case has been registered at Chandrasekharpur police station against the accused and cops have started further investigation into the matter.