The central income tax department searched the office and house of P Rama Mohana Rao, chief secretary to the state government, and those of his kin. This is the first time such a thing has taken place in this state.
IT department officials said searches were made at 13 places, starting 5.30 am, in this city and in Andhra.
The department had recently seized a total of 177 kg of gold and cash amounting to Rs 96 crore in withdrawn Rs 500 and Rs 1,000 rupee notes and Rs 34 crore in the new denomination from three businessmen here -- J Shekhar Reddy, Srinivasalu and Prem.
While the Tamil Nadu government has not said anything officially, the chief minister of West Bengal said the raid was vindictive and unethical.
"Earlier, the principal secretary of Arvind Kejriwal (the Delhi CM) was raided and harassed. Now this vindictive, unethical, technically improper action. Is it to disturb the federal structure? Why don't they raid Amit Shah (national head of the ruling party) and others who are collecting money?" asked Mamata Banerjee, according to reports.