Rajagopal was detained on his arrival from New Delhi and later taken to Pahadi Sharif police station, police said.
Supporters of Rajagopal raised slogans in support of their leader and some of them were taken into custody.
The Vijayawada MP, who has resigned his Lok Sabha seat, had demanded that the police should allow him to meet Chief Minister K Rosaiah.
Police said they have taken the MP into preventive custody as no permission was given to him to observe a hunger strike.
Rajagopal had yesterday said that he would join the movement for a unified Andhra Pradesh and against creation of Telangana.
Rajagopal resorted to hunger strike in the police station in protest against his arrest.
Earlier, a tense situation prevailed at the airport when Rajagopal arrived from Delhi with pro and anti-Telangana supporters raising slogans against each other.
Meanwhile in Vijaywada, the Road Transport Corporation authorities decided to cancel all its rural and city services after Congress MP L Rajagopal was taken into preventive custody this morning ahead of his proposed fast-unto-death.
Sudhakar, Deputy Traffic Manager of APSRTC Vijayawada, said that the Police Commissioner advised the officials to suspend all the services, leaving hundreds of passengers stranded at bus stations.
Shops and educational institutions also remained closed in the district.
SRR and CVR Government College Principal C Vijaya Babu said that though they have not recieved any communication from the Government for declaring a holiday, they decided to close down as a precautionary measure.
Congress leaders took out rallies in the city at various places to protest Rajagopal's custody.
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