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The case was registered on a complaint by AAP leader Sunny Ahluwalia, a resident of Mohali.
In his complaint, Ahluwalia accused Bagga of making provocative, false, and inflammatory statements to outrage religious feelings, promote disharmony, and create feelings of enmity, hatred, and ill-will.
Bagga, who came under attack from the Aam Aadmi Party for his alleged derogatory tweets against Delhi Chief Minister Arvind Kejriwal, had claimed on Saturday that a team of Punjab Police had reached his home in Delhi to arrest him.
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The FIR against Bagga and an unidentified person was registered on April 1 at Punjab State Cyber Crime Police Station in Mohali.
Bagga was under relevant IPC sections, including 153-A (promoting enmity between different groups on grounds of religion, race, place, etc.), 505 (whoever makes, publishes, or circulates any statement, rumour, or report), and 506 (criminal intimidation), according to the FIR.