The Income Tax (I-T) Department on Thursday began raids at the premises of Telangana Congress leader Ponguleti Srinivas Reddy, a party candidate who is contesting the November 30 polls from the Paleru constituency in Khammam district.
As feared by the former MP only a day ago, I-T Department officials reached his house and offices in Khammam in the early hours of Thursday.
The searches, which began at around 3 a.m., were continuing amid tight security.
The I-T officials have seized mobile phones of the employees before carrying out the searches.
Srinivas Reddy, also a businessman, was scheduled to file his nomination on Thursday.
The former MP had joined Congress in July, a few months after he was suspended by the state's ruling Bharat Rashtra Samithi (BRS) for anti-party activities.
On Wednesday, Srinivas Reddy had claimed that I-T searches were likely against him, his family members, supporters and other key Congress leaders in the district.
He alleged that the BJP and BRS had colluded to use the central agencies to conduct raids on Congress leaders.
He told mediapersons that these raids show that Congress party is winning the elections in Telangana.
Srinivas Reddy, who is also co-chairman of the Congress campaign committee, said the party leaders will have to face difficult times in the next few days.
The former MP asked the leaders not to worry over the raids.
On Wednesday, officials from the Election Commission of India along with the police conducted searches at the house of former minister and Congress candidate from Khammam Assembly constituency, Tummala Nageswara Rao.
Nageswara Rao had resigned from BRS recently to join the Congress party after he was denied a ticket to contest the Assembly polls.
The state's incumbent transport minister P. Ajay Kumar is seeking re-election as BRS candidate from Khammam.