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The raiding team, comprising officials of the Election Commission-appointed surveillance squad and the income tax department, seized bundles of cash allegedly meant for distribution among voters, they said.
When the team arrived at the store in Andipatti in Theni district, believed to be run by a supporter of the Amma Makkal Munnetra Kazhagam (AMMK), the shopkeeper fled the spot after downing the shutter.
Soon, an argument broke out between AMMK workers and the officials which resulted in a commotion and police fired four rounds in the air, they said.
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Four AMMK volunteers were detained in connection with the incident.
The officials said a number of neatly packed packets containing cash.
“The packets have ward numbers and number of voters written on them and Rs 300 is written on each of the packets. The raid is continuing,” the senior official said.
Tamil Nadu goes to polls on April 18. Earlier, the Election Commission countermanded election to the Vellore parliamentary constituency on charges of illegal cash being used to lure voters there.