Indian media report that India's income tax department officials raided on the Chennai and Gurgaon premises of Finnish cellphone company Nokia on January 8.
The raids were on charges of alleged tax evasion by the cellphone manufacturer, the reports said.
The raid consisting of about 30-40 income tax sleuths was conducted under section 133 of the I-T Act, the Press Trust of India reported quoting sources.
NDTV said: "NDTV's independent sources have said that the raids are in connection with the parent company supplying components to its Indian unit at a higher price so that the profit of the latter gets reduced, and as a result less tax has to be paid."
The report mentioned a source who said that the undisclosed income is likely to be higher than Rs. 2,000 crore (around £230 million), and that the raid is also connected to the tax payable on royalties to the parent company for seven years.
Nokia in a statement confirmed the raids and said that it was fully cooperating with the authorities.
"As a global company, Nokia consistently fields a large and steady number of tax queries, audits and assessments. Nokia's commitment to being a good corporate citizen is firm and unwavering. We always observe applicable laws and rulings in the countries where we operate. This has been a core principle of our operations in India, where Nokia has been present since 1995," the statement added.