Benami funds and drug trade: What the ED says in the chargesheet on Bineesh Kodiyeri

The Enforcement Directorate, in its chargesheet in the drugs and money laundering case, has reiterated its allegation that Bineesh Kodiyeri, son of CPI(M) leader Kodiyeri Balakrishnan, was the benami of Anoop Muhammed, the main accused in a drug case. The charge sheet also mentions that two of the witnesses have admitted to consuming cocaine with Bineesh in Bengaluru. The ED has said that illegal drugs purchased by Anoop, accused 1, were financed by Bineesh and that he also financially benefited from the proceeds of drug peddling.

In the chargesheet, the ED has stated that Bineesh took a loan mortgaging his mother-in-law's immovable properties from the Punjab National Bank. Bineesh has claimed with this money he gave Accused 1, Muhammad Anoop a loan of Rs 34-40 lakh without any interest or security to run a hotel called Hayaat in Bengaluru. This hotel, according to ED, was a front for the drug related activity and money was brought in the pretext of funding the hotel, however was instead used in the drug business.

ED, in the chargesheet, contends that Bineesh’s bank statement does not substantiate that he gave money to Anoop from the loan money and Anoop has not paid the principal amount or interest. Bineesh has not declared the loan to Anoop in his IT returns since 2012 till date. He did not reveal in his 2015 IT returns that he had given the loan to Anoop and when asked said his CA did not file it despite Bineesh revealing the same to him.

Moreover, Bineesh has allegedly paid huge sums as interest for his loan to the bank through cash deposits, the source of this money is unknown. 

ED further states Anoop has no independent business or standing in the society and that he is being used as benamidar by Bineesh to invest. ED has alleged that Anoop has accepted his active involvement in commission of offence punishable under the provisions of the NDPS Act. He has also accepted his active involvement in the offence of money laundering and his association with the Accused No.4 ie Bineesh. Through the hotel investment, Bineesh brought money from illegal drug trade into the mainstream financial system to escape law enforcement agencies making him guilty of offences under PMLA, ED has alleged.

Other than this, between 2012-13 and 2018-19, a total of Rs 5,17,36,600 (Rs 5.1 crores) have been allegedly deposited in 4 accounts--Federal, IDBI, State Bank and HDFC-- accounts in Bineesh’s name, the source of which is allegedly unknown. Bineesh has declared only Rs 1,16,76,276 (Rs 1.6 cr) declared as deposits in the same period. The ED alleges that the deposits don’t tally with Bineesh’s IT returns and that he was able to give a satisfactory reply about the source of such huge cash deposits in his accounts.

During the search operations of Bineesh’s house in November 2020, one Indusind Bank debit card bearing the name of Mohammed Anoop was allegedly found. At the time, high drama had ensued when Bineesh’s wife had refused to sign the punchnama alleging that the ED had planted the debit card in order to fabricate false evidence against Bineesh.

ED says that though the card was in Anoop’s name, the signature on the back was that of Bineesh. According to the ED, cash deposited by Anoop into Hayaat hotel account was from his only business-drug peddling and this money was handled by Bineesh.

“The finding of debit card which was linked to the bank account of Hayaat hotel from the house of Bineesh Kodiyeri (A-4) crystallizes this fact that he is the beneficiary of the profits generated from the business of drug dealing carried by Mohammad Anoop,” reads the chargesheet.

Bineesh has withdrawn money from the said account using the IDBI debit card. ED says this proves that Bineesh is the beneficiary of the profits generated from the business of drug dealing carried by Mohammad Anoop.

Bineesh, Anoop and another witness Suhas(a witness in the case and a common friend) have a WhatsApp group where Suhas has stated that Bineesh was financing the illegal drug peddling by Anoop.

Another common friend, Sonet Lobo (witness in this case as well) has also allegedly confirmed this to ED.

Apart from Suhas Krishne Gowda, Sonet Lobo too has been attributed as having confessed to the ED that they consumed banned narcotics with Bineesh Kodiyeri. “Sonet Lobo had seen him consuming cocaine at the Royal Suites Apartment during house parties along with Mr. Mohammed Anoop (A-1),” reads the chargesheet.