I fear for the latter. And This would not be first time. ref Jagtar singh hawara & Jagtar Singh 'Tara' who escaped from Jail only to be rearrested after 1 year & 10 years respectively
His encounter and jail break both work against establishment. Enemies know it and their media cells will use it against government whichever way.
Sections of Police are borderline radicalized in Punjab if I am watching them right. There were police officers who refused to go ahead with process of hanging of Rajoana. Though they used the legal avenues mixed with high on communal rants but not violent agitations on streets, but many hindus knew what why when and who of that episode.
The best way was always to keep him in jail and watch their activities. It is both being callous and complacent by part of Punjab police. There is sizable presence of officers from other states who may act as deterrent to more radicalization and subterranean disobedience.
Present SAD government is in full swing to crackdown upon rebel groups who have been summoning illegally formed congregation of Sikhs called Sarbat Khalsa. Few have been slapped with sedation charges this month.
Sikhs groups in western countries are supporting Sarbat Khalsa as SGPC calls it illegal because it has not got their approval or affiliation or whatever they call it the system of hierarchy.
RW media in western countries has been subtly working against SAD because they are alliance partners of Hindus.The synthetic rise of Aam Adami Party suits very well to them as they will use it as tool to divide the mandate.
Since chances of AAP winning the elections have gone down and they hate congress-I and SAD_BJP alike there could be desperation among these terror sympathizers to commit something serious that can ether effect the outcome of elections or simply sabotage the same.