Tension prevailed on the campus as the students who wanted to march to the Lal Bahadur Stadium to stop a meeting of government employees from Seemandhra (Rayalaseema and Andhra) were stopped by police at the NCC Gate.
Police officials said the students had not received permission to carry out the rally.
Raising slogans of "Jai Telangana", students tried to remove barricades and pelted stones at the police, who retaliated with teargas shells and a baton charge. Amidst this, several protesters were arrested.
Osmania University students' Joint Action Committee had earlier sought permission for the peace rally, which police refused.
The committee of students then called for a Telangana shutdown to protest the anti-Telangana attitude of the government in allowing the Seemandhra meeting while denying permission to Telangana groups.