Sharif, the brother of former PM Nawaz Sharif, was arrested on charges of corruption relating to a low-priced housing scheme in Punjab province, said Shahzad Saleem, the head of a regional anti-corruption body.
Angry PML-N supporters gathered in the premises of the NAB court and stopped the armored vehicle of the police in which Shehbaz was brought to the court.
The body is expected to seek Sharif's remand when he is produced before the accountability court.
During the hearing, NAB prosecutor told the court that Shahbaz Sharif being former chief minister misused his power and caused a huge loss to national exchequer.
He requested the judge to view his case as political victimisation as not a single rupee corruption against him has been proved.
In his statement before NAB in August, Fawad had claimed that he had awarded a contract to a "favourite firm" in the Ashiana Housing project on Shahbaz's order. "Shahbaz Sharif being the chief minister had set great examples of transparency and honesty in all projects". About the performance of the PTI government, Imran said that till 100 days, it would complete its work in setting the future line of action, directions and road map, after which anyone may ask questions about its performance.
Chairman PML-N Raja Zafarul Haq, in his capacity as Leader of the House in Senate, earlier on Saturday, convened a meeting of opposition parties today (Monday) in a bid to map out a collective strategy against Shehbaz's arrest.
If that happens, it would mean he would be unable to take part in nationwide by-elections on October 14 involving 30 parliamentary seats following July's general election.
Established by former military ruler Gen. Pervez Musharraf in 2000, the NAB has often been accused of targeting anti-government politicians.
The watchdog alleged that the leader of the opposition provided contracts on high rates to unqualified companies of his friends. He has fled to the United Kingdom and the NAB has written to the interior ministry to bring him back from overseas through Interpol.
The Ashiana Housing Scheme was launched by the Punjab government in 2010.
He was released from prison in September pending an appeal.