Raids were in progress at his residence in Coimbatore, registered offices of some cement companies, four premises of relatives and an engineering college, an official release by the Directorate of Vigilance and Anti-Corruption said.
"On specific information, a prima facie case of cognisable offence is made out that (Palanisamy) has accumulated assets," the release said.
The case was filed by Directorate of Vigilance and Anti-Corruption under sections 13 (2) r/w 13 (1) of Prevention of Corruption Act, 1988 on November 28.
During the check period between 2006 and 2010, Palanisamy, a DMK strongman in Coimbatore district, was the minister for Rural Industries and Animal Husbandry.
Several former DMK ministers and senior party functionaries have been facing the heat from the Jayalalithaa government on charges of either land grabbing or amassing wealth disproportionate to their known sources of income.
Former DMK Ministers Veerapandi S Arumugam, K Ponmudy, K N Nehru, M R K Panneerselvam, T M Anbarasan, K P P Samy, Durai Murugan former MLA B Ranganathan, sitting MLA J Anbazhagan and those close to Union Minister M K Azhagiri in Madurai are among those who have faced action.