Income Tax inspectors searched Shahnawaz's mansion in Hyderabad, the owner of the real estate company King's Group.
The searches were carried out in the city's Falaknuma district.
According to reports, Majeed Khan's home, the Managing Director of real estate firm Kohinoor Group, was also searched.
The Income Tax Department suspects that substantial sums of undeclared money are being funneled to a political party by businesses operating function halls and hotels under the names Kohinoor Group and King's Group.
