The raids were conducted at the residence and office of a contractor, considered a close associate of Balaji, and six other places of his friends and relatives in Thanthonri Malai, Rayanur, Ramakrishna Nagar and Kamaraj Nagar, official sources said.
Policemen have been deployed at the places where raids are being carried out, they said.
Balaji is among the 18 AIADMK MLAs loyal to sidelined leader TTV Dhinakaran who were disqualified by the Assembly Speaker recently.
The raids come against the backdrop of allegations against Balaji that he defrauded several persons to the tune of about Rs 4 crore by promising them jobs in the transport department when he was the minister in-charge of it in 2015.
Balaji has moved the Madras High Court seeking anticipatory bail in connection with the case.