NewsClick FEMA Case: ED Slaps INR 184 Crore Penalty on News Portal and Editor-in-Chief Prabir Purkayastha Over Alleged Illegal Foreign Funding

The Enforcement Directorate (ED) has issued a significant penalty notice of ₹184 crore against the news portal NewsClick and its Editor-in-Chief, Prabir Purkayastha, for alleged violations of the Foreign Exchange Management Act (FEMA). Sources indicate the notice follows a prolonged investigation into the portal's receipt of foreign direct investment (FDI) totaling approximately ₹9.59 crore during the 2018-19 financial year. The probe focuses on allegations that the company, PPK NewsClick Studio Private Limited, overvalued its shares to bypass the 26% FDI cap for digital news media. Investigators further allege that a portion of these funds was diverted for unauthorized purposes. This administrative action adds to a series of legal challenges for Purkayastha, who was previously released in May 2024 after the Supreme Court declared his arrest under the UAPA illegal. While Purkayastha recently secured anticipatory bail in related money laundering cases, the current FEMA penalty represents a major escalation in the financial scrutiny of the media organization. NewsClick's Office in Delhi Sealed After Police's Crackdown.

Major Legal Setback for NewsClick

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