The Enforcement Directorate has issued a notice under the Foreign Exchange Management Act, fining the company that operates NewsClick Rs 120 crore and the portal’s founder-editor Prabir Purkayastha Rs 64 crore.

The agency held that Purkayastha and PPK NewsClick Studio Pvt Ltd that  contravened FEMA provisions on two counts: alleged misrepresentation of foreign direct investment funds and misdeclaration of services and exports, PTI reported.

According to the ED, the adjudicating authority, after a detailed examination of records, evidence, and submissions of the notices, held that the Foreign Direct Investment (FDI) amounting to about Rs 9.59 crore was received during 2018-19 by misrepresenting the nature of business activity in statutory filings, thereby bypassing prescribed sectoral conditions and entry route requirements under FEMA.

“Foreign inward remittances aggregating to Rs 82.63 crore, purportedly received between 2018-19 to 2023-24 towards export of services, were found to be in contravention of FEMA provisions due to misclassification of exports and failure to comply with mandatory reporting requirements, including submission of SOFTEX forms,” it said.

In February 2021, the ED had raided the homes and offices of several individuals linked to NewsClick. NewsClick was accused of overvaluing shares, diverting funds and violation of foreign direct investment norms.

The news outfit moved the Delhi High Court for directions to the ED to issue a copy of the Enforcement Case Information Report (ECIR) and for protection from coercive action. The court had directed no coercive action against Purkayastha in June 2021. The interim orders were extended.

The New York Times had first alleged that the news site was among Chinese propaganda outlets funded by American tech mogul Neville Roy Singham.  Later, in a four-page rebuttal, Singham had called the NYT article “misleading” and an “innuendo-laden hit piece”. 

Newslaundry has extensively reported on Purkayastha's arrest, the NewsClick case and its fallout. Read here. 

Meanwhile, in a separate development, the Delhi High Court on Monday observed that it “cannot allow the country to be maligned on international platforms” while hearing a case concerning British-Indian writer and activist Amrit Wilson, Bar and Bench reported.

Justice Purushaindra Kumar Kaurav made the remark after examining a sealed cover report submitted by the Union government outlining the reasons for cancelling Wilson’s Overseas Citizen of India card.

In 2023, the Union government had cancelled Wilson’s Overseas Citizen of India card after accusing her of being involved in several “anti-India activities” and “detrimental propaganda”. Subsequently, the 82-year-old moved the court against the decision.

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