CBI today carried out searches at 19 places across Tamil Nadu, including the residence of DMK chief M Karunanidhi's son M K Stalin in Chennai in a case of alleged tax evasion of imported cars.
The CBI team reached the house of Stalin in Chennai, who is alleged to be one of the beneficiaries of importing foreign cars, agency officials said.
The raids comes close on the heels of DMK pulling out of the UPA alliance and its five ministers resigning.
An FIR was registered yesterday against one senior Intelligence Officer of Directorate of Revenue Murganandam and two others for allegedly abusing their official position by not taking any action when the import of foreign cars, including some limousines, was made.
According to the FIR, the officials have allegedly entered into a criminal conspiracy with unknown people and caused a loss of Rs 20 crore to the exchequer.
One of the imported cars is being used by Stalin's son, officials said, adding after further investigation names of beneficiaries of importing the car would be included in the FIR.
The CBI said that the FIR was registered on the basis of a 'source information' as the agency had been probing the leads in the case for quite some time.
Raids were going on at other places including a business house, house of an owner of a medical college and others, the sources said.
Meanwhile, Stalin dubbed the CBI raid as a "political vendetta" and said he would face the case legally.
"I am not aware of the reasons for the raid. We will face the case legally," 60-year old Stalin, considered the political heir of Karunanidhi, told reporters in Chennai.
Reports had suggested that Stalin had prevailed over his father in the decision to pull out from the UPA.
As the news of CBI raids spread, senior DMK leaders and a large number of party supporters gathered at the residence of Stalin.
Reacting to the CBI raids on Stalin's residence, DMK leader T R Baalu said, "CBI is misusing their position".
When asked that Congress has disapproved of the raid, he said, "They (Congress) have to wait. They are playing with fire, that's all I can say."
DMK MP T K S Elangovan said, "It is definitely a revenge by Congress. Yesterday, we have withdrawn our support, today they are sending CBI for a raid, that means..
"What else can be stated. The other opposition parties were saying that CBI is only a Congress Bureau of Investigation, Congress has today proved that," he told reporters in New Delhi.
On being asked whether DMK will allow the budget to be passed, he said, "We will definitely raise the issue (raid) and stall the Parliament. We will not support the government in the Budget."
"Today, our important issue is the raid, and UNHRC vote. These things are more important and concerned with lakhs and lakhs of Tamils who are suffering in the hands of Sri Lankan government. Raid is a clear case of vengeance and pressure tactics of Congress government," he said.