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The Karnataka High Court has granted bail to Bineesh Kodiyeri, who is the son of Kerala CPI (M) leader, Kodiyeri Balakrishnan. 

Kodiyeri was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). 

"The criminal petition is allowed subject to conditions", Justice MG Uma of the Karnataka High Court said while granting bail. 

His bail application before the High Court was moved after a special court, on February 22 had declined to grant him bail. 

Kodiyeri was arrested a year ago, on October 29, 2020.

The factual matrix can be traced back to when 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. Subsequently, he was arrested by ED. 

ED submitted that Bineesh is the boss of an already arrested alleged drug peddler Mohammed Anoop, and that the former had transferred huge amounts of funds into the latter's accounts.

The ED further stated that Anoop was recently arrested by the Narcotics Control Bureau (NCB) in Bengaluru, after he was found in possession of 60 grams of MDMA tablets.

Adding on, it was argued that Anoop was made a 'benamidar' for one of Bineesh's restaurants, that he had accepted that Bineesh was his boss, and that he did as instructed for monetary gain.

The ED went on to claim that that Binesh had admitted in his statement dated October 6, that he had paid huge amounts of money to Anoop. 

However, he did not disclose the complete information with regard to the financial transactions, states ED.

Senior Advocate Guru Krishnakumar appearing for the accused contended that the very allegation made by ED that there was illegal drug trade financed by the petitioner, out of which proceeds of crime were generated which are being held as untainted. 

Further, it was argued that the present proceeding cannot be sustained because the Narcotics Control Bureau (NCB) has not found the petitioner to be involved in the illegal drug trade in any manner even after a thorough investigation.