The protesters, raising slogans against the government, were demanding that they be allowed to meet the chief minister.
"We detained Kejriwal and his supporters outside the CM's house and took them to the Parliament Street police station," a senior police officer said.
Among those detained were AAP leaders Manish Sisodia and Kumar Vishwas and also people whose properties were demolished.
A Delhi government official said the demolition drive was done on the orders of the Delhi High Court to remove illegal structures erected on Delhi Development Authority land.
But an AAP leader said the demolition drive had displaced around 500 families.
"It is their land. They have documents of it. But it is unauthorised because you have to get the map passed by the government," Kejriwal said during the protest.
He said it was announced in October 2010 that 1,600 colonies would be regularised in Delhi and this colony was one of them.
"Despite that, 500 houses were demolished," Kejriwal said.
Kejriwal also submitted a memorandum to the Delhi lieutenant governor, demanding an inquiry into the demolition drive, said an official.