Anand Jain, Chairman of Jai Corp and a close associate of Reliance Industries Chairman Mukesh Ambani came under the scanner of Income Tax department with the department officials searching his offices and residence to find clues about some land transaction deals.

Confirming the raid by IT department, an official said, "We are conducting search operations at the establishments of Anand Jain and his company, Jai Corp and operation is still going on."

However, he denied divulging the details of raid as the search operation is still going on. But sources said that IT department collected some bogus documents created to generate cash for making payments on land deals.

The department raided about at nine premises, including the offices and residence of Jain with the help of a team comprising 80 tax officials. However, a company official termed the operation as cross-examination by the I-T department pertaining to an old case.

The IT department also raided the Mumbai office of a real estate fund, managed by Mr. Anand, in September last year. The development also shook the investor's confidence at the Bombay Stock Exchange and the market witnessed marginal decline in stocks of many leading companies including Jain's firm.