A bench of Justices G S Singhvi and Asok Kumar Ganguly also constituted a three-member committee comprising the state home secretary, Hyderabad police commissioner and the vice chancellor of the university to review on a day-to-day basis the atmosphere in and around the campus.
The apex court wanted to know whether such anti-Naxalite force had ever been deployed to quell public rallies or meetings organised by various political parties.
The apex court while permitting the state to deploy civilian police at the campus said the committee would decide if and when there is a need for deploying central paramilitary forces.
The court directed the state government to file its response in an affidavit and posted the matter for further hearing to March 19.
Advocate Prashant Bhushan, appearing for Anita and other university students who had challenged government's decision before the High Court, had alleged over 3000 central paramilitary personnel were deployed there.
They alleged that they had brutally beaten up students, molested girls, assaulted journalists and damaged their cameras or video clippings.
However, senior counsel Harish Salve, representing state government in the matter, tried to justify deployment of central forces on the ground that there were intelligence inputs to suggest that Maoists have infiltrated the university campus to instigate large scale violence on the separate state row.
The apex court, during last hearing on February 23 had asked the state government to furnish proof of "secret intelligence inputs" to prove that Maoists have infiltrated into Osmania University.
A division bench of the High Court had on February 16 upheld the directions of a single judge to move out the Rapid Action Force and CRPF personnel from Osmania university campus.
The division bench had said the single judge was right in his analysis that the Rapid Action Force personnel were deployed in the university campus without any proper study of the prevailing situation.
The state government had assailed the February 16 order, saying the High Court cannot order the removal of paramilitary forces from the campus which is a hotbed of the agitation for a separate Telangana state.