Enforcement Directorate challenges court order quashing NewsClick case

The Enforcement Directorate (ED) has approached the Supreme Court of India to challenge a Delhi High Court order that quashed a money laundering case against the news portal NewsClick and its editor-in-chief, Prabir Purkayastha.

The High Court had previously ruled that the Economic Offences Wing (EOW) FIR was a “gross abuse of the process of law” and that the investment decisions made by PPK Newsclick Studio Pvt Ltd did not constitute a criminal offense. The ED, however, argues that the High Court conducted a “mini-trial” and overlooked material evidence, including emails and statements suggesting pre-planned funding arrangements.

The investigation centers on allegations that NewsClick received approximately Rs 9.60 crore in foreign direct investment (FDI) from an American company in 2018. The agency alleges that shares were issued at an inflated price to bypass FDI caps for digital news media and that these funds were linked to Neville Roy Singham, whom the agency associates with the Chinese Communist Party. The ED contends the funding was intended to secretly channel money for propaganda activities.