The raids are also being conducted in Kochi, Chennai and Bangalore.
The residence and offices of the two superstars are being inspected by seven different teams from the Income Tax department.
The superstars who own several businesses are facing an IT raid for the first time. Sources say that this could be the first I-T raid in the Malayalam film industry. Reports even suggest that Mohanlal owns an IPL team.
Similar raids were conducted at the residences of several Kannada film distributors and film makers on Jun 11 in which several documents were seized. Houses of Kannada film and TV stars K Manju, Sihi Kahi Chandru and many others at J P Nagar, Teachers Colony, Vijayanagar, Jayanagar and Sadashivanagar were raided.