- Ramesh Jarkiholi is the minister of small-scale industries in Karnataka.
- Laxmi Hebbalkar is the president of the state Congress' women's wing
- Mr Jarkiholi and Ms Hebbalkar have interests in the sugar industry
The Income Tax department said there was evidence that the companies of Mr Jarkiholi, the minister of small-scale Industries, and Ms Hebbalkar -- both of whom are involved in sugar business -- had evaded taxes in a "systematic" and "organised" manner.
Mr Jarkiholi and Ms Hebbalkar were not available for comments. News agency Press Trust of India quoted Mr Jarkiholi as saying the raids were a "political controversy". "I have not committed any wrong... The I-T officials had visited us in Belagavi and we have cooperated with them. Even in future, we would cooperate with the officials," PTI quoted him as saying.
The searches, a statement from the Income Tax department said, were launched on January 19 to probe allegations of tax evasion in the business groups.
The investigators had found "huge unexplained cash deposits" in the bank accounts of family members and associates of the two leaders.
The IT department also said during the search operation, mobs had gathered around the premises in Gokak and Belgaum and attempts were made to disrupt law and order.
The department said they have issued summons to a number of people allegedly involved in the case to take the investigation forward.