ED seeks Supreme Court review of Delhi HC dismissal of NewsClick probe

ED has approached the Supreme Court to contest the Delhi High Court's May order that dismissed the FIR and money‑laundering investigation against digital news portal NewsClick and its founder‑editor Prabir Purkayastha, people said. The high court had set aside a 2020 FIR filed by the Delhi Police Economic Offences Wing that accused PPK Newsclick Studio Pvt Ltd of receiving foreign direct investment from US‑based Worldwide Media Holdings LLC in the 2018‑19 financial year. Investigators claimed the investment was routed to bypass rules limiting foreign funds in digital news and that about ₹92 crore came from entities linked to US activist Neville Roy Singham, recorded as payment for export of non‑existent services. Part of the ₹92 crore was used by Purkayastha to buy a flat in South Delhi’s Saket, and the Enforcement Directorate has attached property worth ₹4.93 crore in the case. In September 2021 the ED raided NewsClick’s offices and Purkayastha’s residence, alleging the firm received ₹29.59 crore from Worldwide Media Holdings, overvalued its shares and diverted roughly 45 % of that amount for salaries, consultancy fees, rent and other purposes. The agency also seized a flat valued at ₹4.52 crore linked to Purkayastha and fixed deposits of ₹41 lakh. The Supreme Court appeal aims to revive the investigation and keep the money‑laundering case alive.

Context

Foreign investment in Indian digital news outlets is subject to strict caps to prevent external control. When funds are routed through complex structures, they can be treated as money‑laundering if they do not correspond to real services. The ED’s move reflects its broader effort to enforce these rules and ensure media entities comply with the law.