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The blast occurred at a rowhouse in the Sabarmati area around 10.45 am, an official said.
Additional Commissioner of Police (Sector-1) Neeraj Badgujar said the person who delivered the parcel to the house was also injured and has been arrested.
He said the parcel was delivered to the house of Baldev Sukhadia to exact revenge over some dispute.
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Gadhavi was also injured and has been arrested, he said, adding that the police teams were looking for other accused involved in the incident.
“Primary interrogation has revealed that the parcel was delivered to the address over a dispute with the Sukhadia family. They had also received threats earlier,” he said.
The official said the bomb appears to have been remotely operated, and an electronic circuit, battery and blades were recovered from the site.
A probe team is investigating the exact nature of the device, he said.
The bomb disposal squad (BDS) and forensic team reached the site along with senior police officials, he said.