The Enforcement Directorate (ED) has arrested Bineesh Kodiyeri, son of Kerala CPI (M) leader Kodiyeri Balakrishnan, for money laundering.

The agency on Friday claimed that Kodiyeri allegedly credited “huge amounts of unaccounted funds” into the bank accounts of the drug peddler Mohammed Anoop.

The ED has initiated investigation against Mohammed Anoop and others based on the FIR registered by Narcotics Control Bureau, Bengaluru on August 22 this year.

Earlier, Mohammed Anoop, a drug peddler, was arrested by ED on October 17, 2020 and, during his custodial interrogation, he inter-alia admitted that he was indulging in sale and purchase of narcotics drugs and closely associated with Bineesh Kodiyeri, the ED said in a statement.

“It is also revealed that he held various bank accounts and indulged in transferring/layering of huge proceeds of crime into various accounts. Fund trail investigation also established that huge amount of unaccounted funds were being regularly credited in his accounts by Bineesh Kodiyeri. These were preceded by large cash deposits in Kerala into the accounts of Bineesh Kodiyeri,” it said.

During the course of investigation, it was revealed that Mohammed Anoop is a Benamidar of Bineesh Kodiyeri and all his

financial dealings were done on the instructions of Bineesh Kodiyeri who had paid huge amounts of money to Mohammed Anoop.

He could not explain these cash and fund transactions and was completely evasive in his replies, the agency said.

Bineesh Kodiyeri was produced before the ED PMLA Court on Thursday and the designated court granted ED custody till 5 PM of November 2. Further custodial interrogation and investigation is under progress, it added.

Benamidar is a person in whose name the benami property is held or transferred, and a beneficial owner of the

person for whose benefit the property is being held by the benamidar.

The NCB had claimed in the past that “prominent musicians and actors” in Karnataka are under its scanner after the operation involving Anoop and Kodiyeri.

Kodiyeri has maintained that he knew Anoop and his family and the latter had borrowed money from him and some others for setting up the restaurant business in Bengaluru a few years ago.