The home and offices in Hyderabad of former union minister and Telugu Desam Party lawmaker YS Chowdary have been raided by officials from the Income Tax department and the Enforcement Directorate to investigate allegations of money laundering and financial irregularities.
Mr Chowdary, who owns the Sujana Group of Industries, is a close aide of Andhra Pradesh Chief Minister Chandrababu Naidu.
The searches began late on Friday at the offices of the Sujana Group and continued today. The officials are learnt to have seized several documents relating to the alleged financial irregularities.
The Enforcement Directorate and the Income Tax officials are reportedly investigating an earlier case by the Central Bureau of Investigation or CBI.
The raids come just a week after Chief Minister Chandrababu Naidu, who Mr Chowdary is a close aide of, declared that the CBI cannot conduct raids or investigations in Andhra Pradesh without the state government's permission and withdrew the "general consent". Mr Naidu accused the Modi government of using the CBI against political opponents.
Rules for the Central Bureau of Investigation or CBI say it has complete jurisdiction over Delhi but can enter other states with the "general consent" of their government.
Mr Chowdary was the Minister of State for Science and Technology in the Narendra Modi cabinet till March, when Chandrababu Naidu pulled out of the BJP-led National Democratic Alliance over demands for special status to Andhra Pradesh.