Leaders of Tamil Nadu's opposition DMK and PMK demanded immediate dismissal of Chief Secretary P Rama Mohana Rao, whose residence was raided on Wednesday by Income Tax officials.
Raids were also conducted in several other places connected to Rao, his son and also the residence of Ramesh, Private Secretary of Tamil Nadu Chief Minister O Panneerselvam.
Speaking to reporters here, Leader of the Opposition in the Assembly M K Stalin said the Chief Secretary should immediately resign.
The DMK leader also said that it was most important for the Chief Minister to appoint a new Chief Secretary in Rao's place.
He also demanded a detailed statement from Pannerselvam on the issue.
Terming it as a disgrace for the state, PMK founder S Ramadoss demanded Rao's dismissal and legal action against him.
Rao was appointed to the most important post overlooking the seniority of several other IAS officials.
Meanwhile, former IAS officer and a social activist M G Devasahayam told IANS that the government has the power to summarily dismiss an IAS officer under the Article 311 of the Indian Constitution.
"The raid has opened a Pandora's box. Corruption cannot happen in government without the connivance of corrupt bureaucrats," former IAS officer Devasahayam told IANS.
He also said the central government cannot wash off its hands of its responsibility and also take credit now.
"Rao superceded several senior IAS officers when he was appointed as the state Chief Secretary. Even today there are 18 IAS officers senior to him working in the state or in the central government," Devasahayam said.
"The raid in Rao's residence is a great, great shame for the IAS cadre," he added.