Second Lieutenant Arun Khetarpal was born on 14 October 1950 in Pune, Maharashtra. He was the son of Brigadier M. L. Khetarpal and came from a family with a strong military tradition. He studied at The Lawrence School, Sanawar, before pursuing military training at the National Defence Academy and the Indian Military Academy.
He was commissioned into the Poona Horse, officially known as the 17th Queen Victoria's Own Cavalry, on 13 June 1971. He served as an armoured officer during the Indo-Pak War of 1971.
During the Battle of Basantar in the Shakargarh Sector, Indian troops established a bridgehead across the Basantar River. On 16 December 1971, Pakistani armour launched a counter-attack against Indian positions at Jarpal. When reinforcement was requested, Second Lieutenant Khetarpal moved with his troops to support the threatened sector.
While advancing, his tanks came under fire from enemy strongpoints and recoilless-gun positions. He aggressively engaged these positions, overcame enemy defences and continued towards the battle area. In the ensuing tank battle, he destroyed enemy tanks and helped prevent the opposing armour from breaking through the Indian positions.
His own tank was hit and caught fire. Despite the danger, he continued to engage the enemy rather than abandon his tank. He was eventually fatally wounded during the fighting on 16 December 1971.
For his conspicuous gallantry and determination in the face of the enemy, Second Lieutenant Arun Khetarpal was posthumously awarded the Param Vir Chakra in 1972, India's highest wartime gallantry award. His actions during the Battle of Basantar remain an important part of the history of the Indian Army and the Poona Horse.