The incident took place on Thursday in Kala Singhian village of Kapurthala district, around 180 km from Chandigarh.
Police said Kulwinder returned to his village from Jordon, where he works, late on Wednesday night.
He was sent a sleaze video of his wife with a man from the village following which he brought petrol and poured on himself and his family.
The matter came to light early on Thursday when other family members got up.
While Kulwinder had died, the others were rushed to a hospital in Jalandhar city where they succumbed to burns.
Police said that they arrested villager Gurpreet Singh who allegedly had illicit relations with Mandeep.
Kapurthala district police chief Satinder Singh said a case had been registered against four people belonging of the same village.