The I-T sleuths were verifying tax records of Reddy and the educational institutions belonging to him and his family members, sources privy to the development said.
Raids were also carried out at the educational institutions.
Malla Reddy is the second person in Chief Minister K Chandrasekhar Rao’s cabinet against whom searches by the central government agencies were carried out.
On November 9, Enforcement Directorate officials raided premises linked to Minister Gangula Kamalakar as part of a money laundering probe related to alleged granite scam.
The ED case of money laundering stems from a CBI FIR that was filed to probe alleged irregularities in granite trade in the state.