Published 1 day ago • loading... • Updated 14 hours ago
Foreign Funding Case: HC Quashes FIR, ED Case Against NewsClick, Founder
The court found no incriminating evidence after 1.5 years of ED scrutiny and said the case was a gross abuse of legal process.
On Wednesday, the Delhi High Court quashed the Economic Offences Wing's FIR against NewsClick and founder-editor Prabir Purkayastha, dismissing allegations of foreign direct investment violations.
The 2020 case alleged NewsClick received Rs 9.59 crore from Worldwide Media Holdings LLC via overvalued shares to bypass regulatory caps, prompting an Enforcement Directorate money laundering investigation.
Citing policy records, Justice Neena Bansal Krishna noted no foreign investment cap existed for digital news in 2018 and dismissed claims that salaries and rent constituted siphoned funds.
Describing the investigation as a "fishing and roving exercise," the court ruled the case was "nothing but a gross abuse of the process of law" due to lack of evidence.
With the predicate FIR quashed, the Enforcement Directorate's related money laundering proceedings were simultaneously dismissed, providing relief to the outlet after years of intense regulatory scrutiny.