Samajwadi Party president Mulayam Singh Yadav told the Lok Sabha that excise officials, helped by security forces, conducted raids on party general secretary Amar Singh's home on Monday night.
Some factories in Ghaziabad, from where he had resigned six years ago, were also raided.
Raising the issue soon after the House assembled on Tuesday, Yadav said the raid was carried out between 2300 IST and 0200 IST.
He said the officers "did not know that Amar Singh had resigned from the companies six years ago", and urged Speaker Manohar Joshi to set up a committee of MPs to probe the incident.
Yadav said the officers "insulted" Amar Singh's father and brother. Some officers, whom he did not name, threatened to write a report against Amar Singh "to teach him a lesson when Parliament was in session".
The raids reflected an "undeclared emergency" imposed by the government, Yadav said.
Parliamentary Affairs Minister Sushma Swaraj said she would inform Prime Minister Atal Bihari Vajpayee about his statement.
"If he wishes to respond, he will do so when he replies to the debate (on the no confidence motion) this evening," she said.