Panic gripped Dehlan village of Antaryami, one of the Indians held captive by militants in Iraq, and other towns and villages in Himachal Pradesh as the fresh deadline set by the captors to kill one hostage at 2030 IST drew closer.
TV footage showing a militant holding a gun to Antaryami's head made people restive and they came out on the roads and blocked traffic.
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Ten days ago Antaryami, Tilak Raj and Sukhdev were taken hostage along with four other foreigners.
Harjinder Singh, Antaryami's sister, said anything could happen if the government failed to save her brother and Tilak Raj.
Ram Murti, his father, even threatened to commit suicide if his son was not saved.
Meanwhile, Bhago Devi, his mother, was taken to hospital on Thursday night after her condition suddenly deteriorated.
She was constantly weeping for her son.
Tilak Raj's wife is already in hospital.
Ram Murti said he had lost faith in the government. "We have lost faith in everyone except god."