Eshwarappa said he was not scared by the searches.
"Truth will prevail after investigations. It's all political vendetta. I will fight it out in the court."
Last week, he had dismissed calls for his resignation due to the case.
The raids were carried out simultaneously in eight places in Bangalore and Shimoga district in central Karnataka, lokayukta additional director general of police Sathyanarayana Rao said.
On December 15, the lokayukta court in Shimoga had ordered an investigation into a complaint filed by advocate B Vinod Kumar against the deputy CM and his family members.
In his private complaint, Vinod has alleged Eshwarappa, his son Kanthesh KE and daughter-in-law Shalini have amassed wealth disproportionate to their known sources of income.
Congress leader Siddaramaiah said, "We demanded his resignation long ago. I hope Eshwarappa will put in his papers at least now."
With inputs from PTI