The Delhi High Court has granted anticipatory bail to Prabir Purkayastha, the founder and editor-in-chief of NewsClick, in two separate cases concerning alleged foreign funding violations and money laundering. Justice Neena Bansal Krishna delivered the order, also extending similar relief to NewsClick director Pranjal Pandey in the case registered by the Delhi Police's Economic Offences Wing (EOW).
The EOW is investigating foreign direct investment (FDI) received by PPK NewsClick Studio Pvt Ltd. The Delhi Police's FIR alleges that PPK Newsclick Studio Private Limited received ₹9.59 crore in FDI from Worldwide Media Holdings LLC, U.S., during the financial year 2018-19. The FIR claims that the investment was made by greatly overvaluing the shares of the company to bypass the alleged 26% FDI cap for digital news websites. It further alleges that over 45% of this investment was diverted towards salary payments, consultancy fees, rent, and other expenses, allegedly for ulterior motives. The Enforcement Directorate (ED) initiated its investigation based on this FIR, conducting searches on NewsClick's premises and other locations related to the funds received from overseas.
The court's decision to grant anticipatory bail to Purkayastha and Pandey considered the prolonged investigations since 2020 and found no evidence suggesting the accused would tamper with evidence or influence witnesses. The court emphasized the constitutional protection of personal liberty, stating that bail should not be withheld as punishment. Both Purkayastha and Pandey have been directed to cooperate with the ongoing investigations and provide personal bonds with surety.
In 2021, the High Court had granted interim protection from arrest to Purkayastha and Pandey in these cases, which has been periodically extended.
In October 2023, the Delhi Police raided the NewsClick office and the residences of nearly 80 journalists and individuals associated with the portal. Purkayastha was arrested the same day in connection to a separate case filed under the Unlawful Activities Prevention Act (UAPA), which alleged the news outlet received funds from Chinese entities to undermine India's sovereignty. The case was registered after a New York Times report alleged NewsClick received money from Neville Roy Singham, who reportedly worked with the "Chinese government media machine" to spread propaganda. However, the Supreme Court declared Purkayastha's arrest in the UAPA case invalid in May 2024 and ordered his release.
The EOW has stated that Purkayastha, after seeking protection from arrest, provided only the balance sheets of PPK NewsClick Studio Pvt. Ltd. for the financial years 2017-2020 but failed to provide closure details to verify the source of revenue, expenditures, end use of funds, FDI, and funds from foreign entities. The agency also stated that Purkayastha failed to provide information on the export services provided by PPK NewsClick Studio Pvt. Ltd. to foreign entities against the fees/remittances paid by them. The ED alleges that NewsClick received foreign funds disguised as foreign direct investment to promote pro-China propaganda.
