The students, who were holding demonstration on the varsity campus, were later released, police said.
The protesters tried to gherao Telangana Non-Gazetted Officers (TNGOs) President G Devi Prasad and other invitees while they were on way to attend unveiling of a statue of Telangana ideologue late Prof Jayashankar on the occasion of his birth anniversary.
However, police immediately intervened and took seven of them into preventive custody, Osmania University Police Station Inspector A V R Narasimha Rao said.
The students have been holding protests on the campus for the past several days, demanding that instead of regularising the contract varsity employees, the Government should launch recruitment drive so that other aspirants too can apply.