Some of the students, including women, had consumed alcohol at the party held on Sunday night, they said, adding that the detained students were being subjected to a medical test to determine the alcohol level in their blood, under the provisions of the Bombay Prohibition Act.
When contacted, Dr Vidya Yeravadekar, director of the institute, told PTI that the students had sought permission from the hostel authorities for a "late out" but had failed to return within the time limit prescribed by the institute authorities.
It was not a "rave" party at which narcotics are consumed, the police said.
According to Yeravadekar, the girls were released by police.
The students involved are doing their MBA at Symbiosis Management Institute, Pune.
An internal enquiry would be set up to probe the incident, Yeravadekar added.
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