The Income Tax (I-T) department on Thursday carried out searches at the sugar mill and residence of Nationalist Congress Party MLA Hasan Mushrif in Kolhapur district of Maharashtra.
An I-T official from New Delhi told news agency Press Trust of India that the searches were conducted at the premises after some discrepancies were reported in the sugar mill's account books.
"The searches are still in progress," he said, without elaborating.
The NCP, however, accused the government of misusing agencies to harass the opposition.
"Mushrif's properties have been raided by the I-T department. It is nothing but harassment of opposition leaders through agencies. Those who are in the opposition are being threatened," NCP chief spokesperson Nawab Malik said.
Hasan Mushrif, a loyalist of NCP chief Sharad Pawar, represents Kagal Assembly seat in Kolhapur.