Karnataka High Court Stays ED's Money Laundering Case Against CPI(M) Leader's Son Bineesh Kodiyeri

The Karnataka High Court on Thursday stayed further proceedings against Bineesh Kodiyeri, son of Kerala CPI (M) leader Kodiyeri Balakrishnan, who was arrested by the ED under the Prevention of Money Laundering Act.

Senior advocate K. Suman, appearing for the petitioner, informed the court that the cognizance taken of the offences under the Prevention of Money Laundering Act in the absence of the petitioner having been chargesheeted for the predicate offence (under NDPS Act) is impermissible.

Special Public Prosecutor Prasanna Kumar argued that PMLA is also applicable to people who assist in the generation of illegal funds through crime and not just to those accused in the predicate offence.

A single judge bench of Justice Hemant Chandangoudar then ordered “Interim order as prayed for insofar it relates to petitioner herein. List this matter after two weeks.” The special court is likely to frame charges against him on August 18.

The High Court had in October 2021 granted bail to Bineesh. He was arrested a year ago, on October 29, 2020, and since then he had been under custody. The Enforcement Directorate has moved the Supreme Court of India challenging Karnataka High Court's granting bail to the accused.

Mohammed Anoop - was arrested by the Narcotics Control Bureau (NCB) in Bengaluru, after he was found in possession of 60 grams of MDMA tablets (a psychotropic substance) in his residence. Later he was arrested by ED.

It is alleged that Mohammed Anoop was made a 'benamidar' for one of Bineesh's restaurants.He has also accepted that "Bineesh is his boss and he did whatever Binesh Kodiyeri told him to do for which Bineesh used to pay him."

It is also alleged that Investigation under PMLA further revealed that ED has sufficient material with reasons to believe that Bineesh is guilty of the offence of money laundering under section 3 of the Act and punishable under section 4 of the Act.

Case Title: BINEESH KODIYERI And DIRECTORATE OF ENFORCEMENT

Case No: CRL.P 6488/2023

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