ED slaps Rs 184 crore FEMA penalty against NewsClick and its editor-in-chief Prabir Purkayastha
The order specifies that the company that owns the portal -- PPK NEWSCLICK Studio Private Limited -- has been penalised for an amount of Rs 120 crore.
The Enforcement Directorate on Monday said it has imposed a Rs 184 crore penalty under the Foreign Exchange Management Act (FEMA) on news portal NewsClick and its editor-in-chief, Prabir Purkayastha, officials said. According to the order, the company that owns the portal--PPK NEWSCLICK Studio Private Limited--has been fined Rs 120 crore, while Purkayastha has been penalised Rs 64 crore for alleged FEMA violations.
The adjudicating authority observed that the "contraventions" were substantial, deliberate, and systemic in nature, involving large-scale foreign exchange transactions and breach of statutory declarations furnished to regulatory authorities.
A response from NewsClick on the development is awaited.
Probe stemmed from complaint filed by ED
The proceedings stemmed from a complaint filed by the ED under Section 16 of the FEMA, alleging contraventions of the Act and the rules and regulations framed under it in connection with the receipt and utilisation of foreign funds by NewsClick.
After a detailed examination of records, evidence, and submissions by the noticees, the Adjudicating Authority held that:
- Foreign Direct Investment (FDI) of around Rs 9.59 crore, received during FY 2018–19, was obtained by misrepresenting the nature of business activities in statutory filings. This, the authority said, allowed the entity to bypass prescribed sectoral conditions and entry route requirements under FEMA.
- Foreign inward remittances totalling Rs 82.63 crore, claimed to have been received between FY 2018–19 and FY 2023–24 towards export of services, were found to be in violation of FEMA provisions. The violations included misclassification of exports and failure to comply with mandatory reporting norms, such as the submission of SOFTEX forms.
The authority further observed that the transactions were deliberately structured in a manner that defeated the objectives of India's foreign exchange regulatory framework.
Purkayastha, who was also a director of the company, was found to be in charge of and responsible for the conduct of the business at the relevant time. He has therefore been held liable under Section 42 of FEMA.
ED raided premises of NewsClick
The ED had first raided the premises of NewsClick in the Saidulajab area of New Delhi in September 2021 in connection with a money laundering probe. The agency has since recorded statements of more than 25 people in the case, including that of editor-in-chief Purkayastha.
In 2023, the Bharatiya Janata Party (BJP) cited a report by The New York Times to allege wrongdoing by the portal and its promoters. The report claimed that the portal was part of a global network that received funding from American billionaire Neville Roy Singham, who allegedly works closely with the Chinese government’s media ecosystem.
Founded in 2009, NewsClick states on its website that it is an independent media organisation focused on covering news from India and abroad, with an emphasis on progressive movements.
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