The protesters include women activists and leading academicians.
The women, carrying placards reading "Respect Fundamental Rights" and "Why downgrade Jammu and Kashmir", assembled Tuesday in a park in Srinagar, the main city in the region.
Other members of the group included Mumtaz Soz, the wife of senior Congress leader Saif-ud-Din Soz and social activists Hawa Bashir and Muslim Jan.
"We demand the restoration of our civil liberties and political rights", Suraya told reporters as she was being whisked away by the police.
The Governor said that the situation in Kashmir was normal and there had been no violence in more than two months. After detaining them at the Kothibagh police station for several hours, the women were arrested and sent to the Central Jail.
Authorities had only restored call and text services for mobile phones on Monday, following a 72-day blackout in the restive northern territory imposed after New Delhi scrapped the region's semi-autonomous status.
Fearing a backlash in Kashmir, the state government arrested scores of politicians, lawyers, businessmen and youth.
"Very soon, we will restore internet services", Satya Pal Malik said.
Hundreds of Kashmiri leaders including former Chief Ministers Farooq Abdullah, his son Omar Abdullah, as well as Mehbooba Mufti - have been placed under detention or house arrest since August 5.
Already fraught relations between the two South Asian nuclear rivals have further flared up after India scrapped the special provisions of the state of Jammu and Kashmir. "We are here to tell the entire world that we are angry against this unilateral decision", said Bashir.
He said in the last two months, "not a single bullet" was sacked in the Valley and no protests had taken place as he credited the security forces for their strict vigil.
"We feel betrayed, humiliated and violated as people", the statement read.
Detainees must be immediately released and demilitarisation of rural and urban areas must be ended, they also demanded.
They also tried to stop them from distributing a statement to the media covering the protest.