Veeraiah appeared before ACB at around 10.30 am in connection with the case and was arrested after a session of questioning, an ACB official said.
Veeraiah, who hails from Khammam district, will be produced before a magistrate on Tuesday.
The MLA said he will cooperate with ACB officials.
ACB had served him a notice earlier too. But on June 19, the MLA wrote to the agency saying he could not appear because of illness and sought 10 days' time.
On May 31, Revanth Reddy and two others were arrested by ACB while allegedly paying a bribe of Rs 50 lakh to Elvis Stephenson, a nominated MLA, for supporting TDP nominee Vem Narendar Reddy in the next day's legislative council election.
They got bail from the high court last month.
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