The Income Tax department is conducting searches at the residences of Telangana Congress working president A Revanth Reddy on Thursday.
The Congress condemned the raids and termed it as "political vendetta" by the ruling TRS in the state and the BJP at the centre.
A senior official of the I-T department confirmed the searches but did not reveal details such as what triggered the raids.
Calls made to Revanth Reddy for his reaction went unanswered.
Mr Reddy was appointed as one of the Working Presidents of Telangana Pradesh Congress Committee recently.
Jubilee Hills police inspector P Chandra Shekar said they deployed police force near Mr Reddy's residence to avoid any untoward incident.
The city police had earlier issued notice to the Congress leader and former MLA seeking his appearance as part of investigations in a case relating to alleged irregularities committed by office-bearers of a Co-operative Housing Society in 2004.
Describing the I-T searches as "politically motivated", TPCC president Uttam Kumar Reddy tweeted that the TRS and BJP were hand in glove.
"IT & ED raids at @INCTelangana Working President @revanth_anumulas house is pure political vendetta to demoralise our strong MLAs (sic). The people will teach KCR a lesson for being hand in glove with the BJP and the Central govt. I severely condemn these politically motivated raids," he tweeted.
On May 31, 2015, Revanth Reddy, then in Telugu Desam Party, was caught by Anti-Corruption Bureau while allegedly paying a bribe of Rs 50 lakh to Elvis Stephenson, a nominated MLA, for supporting TDP nominee Vem Narendar Reddy in Legislative Council elections held on June 1, 2015.
"First (sic) it was @JaggaReddyT & now @revanth_anumula, this is a clear sign of KCRs cowardice. He has no capacity to take on any of our leaders & hence resorts to these backdoor moves. @INCTelangana will be united in its fight to rid Telangana soon of his autocratic & whimsical rule," the TPCC president said in another tweet.