Directorate of Vigilance and Anti Corruption personnel raided the residences of Arumugam, his son Raja and others after it filed a case charging him with amassing over Rs 2.88 crore during his tenure as agriculture minister in the previous DMK regime, a DVAC press release said.
"As an essential part of investigation, searches are being conducted at 16 places," it said.
The DMK strongman is already facing a land grab case against him.
Arumugam is the latest among several DMK leaders and former ministers, besides legislators, to face police and DVAC action either on land grab charges or allegations of disproportionate assets, after the All India Anna DMK government came to power in April last year.
The DVAC had earlier in the year conducted raids at the houses of 11 former DMK ministers, legislator J Anbazhagan and former legislator B Ranganathan.