Delhi High Court Quashes ED Probe Against NewsClick | Latest update

The Delhi High Court has annulled the Enforcement Directorate (ED) probe into money laundering allegations against NewsClick and its founder-editor Prabir Purkayastha. Justice Neena Bansal Krishna stated that the investigation represented an arbitrary misuse of power targeting independent journalism. The court observed that the FIR filed by the Economic Offences Wing (EOW) lacked evidence to substantiate claims of fraud and breach of trust, and continuing the FIR would constitute a misuse of legal provisions.

The case began in August 2020 when Delhi Police registered an FIR against NewsClick, alleging foreign funding violations. The FIR claimed that NewsClick received ₹9.59 crore in foreign direct investment (FDI) from WorldWide Media Holdings LLC, an American company, at a premium price of ₹11,510 per share despite the nominal value being ₹10 per share. Investigations suggested this was done to circumvent the 26% FDI cap in Indian media entities. Subsequently, ED conducted searches at NewsClick's offices and related locations under the Prevention of Money Laundering Act (PMLA), seizing foreign currency, documents, and digital evidence.

The ED investigation revealed that NewsClick received ₹38.05 crore in foreign funding over three years, including ₹9.59 crore via FDI and ₹28.46 crore through service exports. In August 2023, BJP MP Nishikant Dubey alleged in Parliament that NewsClick was involved in spreading Chinese propaganda, citing a New York Times report. Following this, NewsClick faced charges under the Unlawful Activities (Prevention) Act (UAPA) and sections of the IPC, leading to Prabir Purkayastha's arrest on October 3, 2024. Delhi Police questioned 46 individuals and conducted searches at 31 locations linked to NewsClick.

NewsClick, founded by Prabir Purkayastha in 2009, operates as an online news portal publishing national and international news. Multiple agencies, including ED, CBI, and Delhi Police, have investigated the portal over various allegations.