The Congress, however, alleged that the arrest was a political vendetta.
Vishnu and his brother Srinivas were arrested late last night by the Special Investigation Team (SIT) probing the deaths.
Vijayawada commissioner of police Goutam Sawang confirmed the development.
On December 7, five persons died while 22 others were hospitalised after consuming liquor at Swarna Bar in Krishnalanka area here, owned by Vishnu and his family.
On Wednesday, the SIT had questioned Vishnu all day but allowed him to go home at night.
Condemning the arrest, Andhra Pradesh Congress president N Raghuveera Reddy alleged that the the ruling TDP government was pursuing a political vendetta against the former MLA.