The residences of Sasikala's sister-in-law, Illavarassi's son Vivek at Mahalingapuram and daughter Krishnapriya at T Nagar continued to be searched. Pugazhendi is also under I-T scanner.
"We have information about shell companies and the search is in connection with their operations", he said.
The report also claimed that diamond jewellery and Swiss watches were seized from the hostel rooms of Sengamala Thayaar Educational Trust Women's College, owned by Sasikala's brother V Dhivaharan at Sundarakottai in Mannargudi.
Mr. Nagarajan also alleged that the raids were conducted to retrieve the documents including video clippings and pictures relating to the treatments given to former Chief Minister Jayalalithaa.
Officials in the know said that guns are being trained against eight persons related to the Sasikala family.
The IT department has taken this stringent action against the Sasikala kin as they were indulged in tax evasion. "Cash and jewels worth a few crores have been seized too", according to sources. According to a report by the Deccan Chronicle, the department is also investigating the routing of the funds by shell companies outside the country post demonetisation.
In the massive search exercise, over 1800 IT officials began simultaneous searches at 187 locations in Tamil Nadu, Puducherry, Delhi, Hyderabad and Bengaluru on Thursday morning. It is said that more than 150 bank accounts are likely to be frozen at the end of the operation.