The raid followed questioning of few relatives of Dayanidhi on his whereabouts.
The Madurai police had registered a case against him for alleged illegal mining activities.
Since then Dayanidhi has gone underground. The Madras high court had also denied him advance bail.
He has now moved the Madras high court to quash the case registered against him.
Dayanidhi is alleged to have encroached upon other peoples land and also said to have been involved in illegal mining of granite blocks in government lands, private lands.
He and his partner S Nagarajan in "Olympus Granites" are charged with committing gross violation of mining rules and norms.
The case against Durai was registered on a complaint lodged by Parthiban, Village Administrative Officer (VAO) of Keezhavalavu under section 379 (theft) and 447 (trespass) of IPC besides invoking provisions of the Mines and Minerals Act and TN Public Properties (Prevention of Damages and Loss) Act.
Dayanidhi is among 12 mine owners against whom FIRs have been filed following a report by former Madurai collector U Sagayam.
The estimate of loss to the state exchequer was to the tune of Rs. 16,000 crore.