The shares of Jai Corp hit the lower circuit filter at the Bombay Stock Exchange (BSE) on Thursday to close with a loss of 4.94 percent, on news that the income tax authorities were conducting raids on the premises of its non-executive chairman Anand Jain.

The company's shares, which opened at Rs.79 at the BSE, eventually closed at Rs.74.15 - the lower circuit for the Jai Corp scrip on the BSE - data with the bourse showed.

"A team of 80 people is conducting the search operations at eight locations and it includes Mr. Jain's residence," said a senior official with the Income Tax Department here.

"We cannot say anything more at this moment. The operations are still on. All I can say for now is that the search operations have to do with some real estate deals," the official added.

Jain, a close confidant of Reliance Industries' chairman Mukesh Ambani, had shot into limelight in 2007, when Forbes magazine named him among 40 richest Indian billionaires. He has plans for several special economic zones in the country.

The website of Jai Corp says he is chairman of the Navi Mumbai SEZ Pvt Ltd, the Mumbai SEZ Ltd, Reliance Haryana SEZ Ltd and Urban Infrastructure Venture Capital Ltd.

The venture capital firm had raised $500 million from international investors for investing in the Indian real estate sector.

This apart, his Urban Infrastructure Opportunities Fund had raised Rs.32.86 billion from some 750 retail and institutional investors, the website said. This fund was scrutinised by the Income Tax Department last year.