Several people were injured from both the sides while two reporters sustained head injuries, the police official said.
The police resorted to a cane charge to disperse the mob and TDP workers were taken outside the marketyard.
Local police sub-inspector Osman Sharif who arrived at the location was surrounded by TDP workers outside the marketyard and attacked, after which he received a severe blow to his head, while TDP leader Errabelli Dayakar Rao was arrested and shifted to the Narmetta police station.
The police shifted slogan shouting TDP workers and ensured that no violence took place.
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Palakurthy has emerged a battleground for TDP leader Errabelli and TRS leader Kadiam Srihari for sometime now.
They were involved in arguments and picked up fights several times.
Recently, both party workers almost exchanged blows at an event in Bommera village on May 24.
Earlier, on May 11, Errabelli and Kadiam had a heated exchange at Katrapalli village.