Police said that Arthar, the accused, allegedly misbehaved with a standard-eighth student yesterday.
Some local residents today staged a protest outside the school, after which the police took the teacher into custody.
"The teacher has been accused of misbehaving with several girl students of the school over the past two years," said inspector Y Venkateshwarlu of Rajampet rural police.
A case under section 354 of Indian Penal Code (outraging modesty of woman) was registered against him, the inspector added.