Hyderabad Income Tax officials on Thursday conducted searches at the residence of Bharat Rashtra Samithi (BRS) lawmaker from Miryalguda assembly constituency, Nallamothu Bhaskar Rao, and the companies of his close associates on the suspicion of hoarding of huge cash meant for distribution during the November 30 assembly elections in Telangana, people familiar with the matter said.

Around 40 teams of the I-T department began the search operations at three different places – Hyderabad, Nalgonda and Miryalguda, simultaneously, since early hours of Thursday. The operations are likely to go on till late in the night. Rao is contesting as the BRS candidate from Miryalguda for a third term.

A BRS leader familiar with the development said the searches were conducted at the MLA’s residence at Sakhapuram village of Nidamanuru block and the residences of his sons and relatives, besides at Mukundapuram solvent oil mill in Tripuraram Mandal and Mahendra oil mill at Nehru Ganj in Nalgonda.

Searches were also conducted at the residence of the MLA’s close follower Sridhar Rao and that of three other relatives of Rao in Hyderabad. “The MLA is believed to have made huge investments in real estate and infrastructure companies,” the party leader quoted above said.

The Income Tax department raids were carried out based on the tip-off that a huge amount of unaccounted cash was stored with him for election spending.

Bhaskar Rao, however, refuted the reports that the Income Tax authorities had raided his house in his village. “I understand, the I-T department officials are conducted searches in some of the rice mills and other companies of my associates. They haven’t contacted me. If any such raids are happening, how can I be among the people campaigning in the villages?” he asked, while speaking to reporters at Vemulapalli village.

The MLA accused the opposition parties of spreading false propaganda against him. “If I have any black money or am in possession of unauthorised cash, I will surrender it to the I-T department,” he said.

Meanwhile, unconfirmed reports from Chennur in Mancherial district said the flying squads of the Election Commission had confiscated ₹50 lakh cash from the employees of the firms belonging to former MP G Vivek, who is contesting as Congress candidate from Chennur assembly constituency.

The money is suspected to be meant for spending in the elections on behalf of the Congress candidate. Neither the EC nor the police have issued any statement confirming the seisure of the cash yet.

Earlier on November 13, the Income Tax officials had conducted searches at the residence of state education minister Sabitha Indra Reddy’s relatives in Hyderabad.