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Besides the Rashtriya Janata Dal supremo, the IT raids were also carried out on the premises of party MP P.C. Gupta's residence as well as several businessmen and real estate agents in Delhi and Haryana's Gurugram and Rewari.
The raids started around 3 a.m. on Tuesday, in which over 100 officials were involved.
The IT Department's action comes in the wake of the allegations made by former Bihar Deputy Chief Minister and senior BJP leader Sushil Kumar Modi.
Modi has accused Lalu Prasad and his children - Bihar Deputy Chief Minister Tejashwi Yadav, Health Minister Tej Pratap Yadav and Rajya Sabha Parliamentarian Misa Bharti - of being involved in corrupt land deals.
Bihar Chief Minister Nitish Kumar on Monday said if there was documentary proof or solid evidence against the Rashtriya Janata Dal chief and his family then the central government should take legal action.
The Bharatiya Janata Party had demanded a CBI probe into the "shady" land deals.
Union Law Minister Ravi Shankar Prasad has alleged that RJD chief's daughter Misa Bharti has not disclosed these alleged assets in her election affidavit and has demanded that the Election Commission take action against her.
The BJP leader also alleged that the land deals were done during Lalu Prasad's tenure as Union Railway Minister in the United Progressive Alliance (UPA) government.
Following the IT raids, Sushil Kumar Modi, who has been repeatedly accusing Lalu Prasad and his family in the "benami" properties case, told the media in Patna that his stand was "vindicated".
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)