Sambalpur Superintendent of Police Akhileswar Singh said Prof MK Sahu, head of the Department of Law, was arrested after the alleged victim lodged a formal complaint at Burla police station today.
According to the FIR, the incident took place on Sunday when the woman and other students had gone to the department to prepare papers for a seminar.
The scholar asked Sahu to give her the key of the department but the accused said the key was not with him and asked the students to use the computer at his chamber, the FIR said.
Sahu denied the charges against him. Both the victim and the professor underwent medical examination.
The matter has been taken up by the sexual harassment cell of the university.
Earlier on January 4, a professor of history department of the university was arrested and sent to jail on charge of physically assaulting a minor daughter of another professor in the campus. The professor was later suspended.