The incident happened near Acropolis Mall in Kolkata's Kasba on Friday evening.
Ghosh and his acquaintances were sitting on the footpath when two men arrived riding a scooter.
CCTV footage showed the pillion rider got off the scooter, approached Ghosh and apparently tried to shoot him.
TMC councillor Susanta Ghosh speaking to reporters | Photo courtesy: Screenshot grab from YouTube video
In the next moment, the councillor and his acquaintances chased the shooter and also managed to catch him.
Police said the attacker, a minor from Bihar's Vaishali, failed to fire the arm due to the gun malfunction. An improvised 9 mm pistol has been recovered from the minor.
Ghosh is the councillor of Ward Number 108 of Kolkata Municipal Corporation (KMC).
Speaking to the reporters, Ghosh said, "I can't imagine that I had to face such an incident in my own locality. More than being terrified, I am heartbroken. I hope Kolkata Police will nab the main person behind the attack."
However, Ghosh said he was unaware about who could be behind the attack.