NewsClick Case: ED Moves Supreme Court to Overturn High Court Order
The Enforcement Directorate challenges the Delhi High Court's decision to quash the EOW FIR in the NewsClick case, alleging overlooked evidence.
The Enforcement Directorate (ED) has approached the Supreme Court, seeking to set aside a May 2026 order by the Delhi High Court that quashed the First Information Report (FIR) filed by the Economic Offences Wing (EOW) in the high-profile NewsClick case. The agency contends that the High Court effectively conducted a "mini-trial" during a writ petition stage and ignored critical evidence.
The Core of the Legal Battle
The Delhi High Court had previously ruled that the essential components of criminal conspiracy and cheating—under Sections 120-B and 420 of the Indian Penal Code (IPC)—were not established in the case. However, the ED, through its Special Leave Petition (SLP), argues that this decision was flawed.
The agency claims that the High Court relied too heavily on the arguments presented by PPK Newsclick while failing to adequately consider statements, emails, and other materials provided by the ED and the police. According to the ED, these documents clearly indicate that the funding arrangements for the news entity were pre-planned.
Allegations of Foreign Influence and Money Laundering
The ED's investigation centers on a complex web of funding involving foreign entities. The key allegations include:
- Overvalued FDI: In 2018, PPK Newsclick allegedly received Rs 9.60 crore as Foreign Direct Investment (FDI) from a US-based company. The ED claims shares were issued at an inflated price of Rs 11,500 each.
- The Singham Connection: The agency alleges these funds are linked to Neville Roy Singham, whom the ED describes as having ties to the Chinese Communist Party. The agency believes the money was intended to secretly fund propaganda and information activities.
- Ghost Services: Beyond the FDI, the ED identified an additional Rs 92 crore received by PPK from companies linked to Singham. This money was purportedly for the "export of services," which the ED claims never actually existed.
Financial Violations and Asset Seizures
The probe has uncovered further financial irregularities. The ED alleges that PPK Newsclick concealed its identity as a news organization to bypass strict regulations and approval requirements governing foreign investment in the Indian news sector.
The agency further claims that Prabir Purkayastha, the owner of PPK, used a portion of these funds to buy a flat in the Saket area of Delhi. To date, the ED has attached properties valued at Rs 4.93 crore. In February 2026, a penalty of Rs 184 crore was imposed on both PPK and Purkayastha during proceedings under the Foreign Exchange Management Act (FEMA).
A Web of Investigations
The NewsClick controversy has triggered a multi-agency crackdown:
- Delhi Police EOW: Registered the original FIR under IPC Sections 120-B and 420.
- Delhi Police Special Cell: Filed a separate FIR under the Unlawful Activities (Prevention) Act (UAPA).
- CBI: Registered a case under the Foreign Contribution (Regulation) Act (FCRA).
- ED: Launched two Enforcement Case Information Reports (ECIRs) based on the police and CBI FIRs.
ED's Grievances Against the High Court
The ED argues that quashing the EOW FIR has severely hampered connected money-laundering proceedings. The agency expressed frustration that it has been unable to move forward with its investigation since 2021 due to court orders restraining coercive action.
Furthermore, the SLP raises concerns regarding the judicial process, noting that the High Court delivered its judgment six months after hearings concluded and allegedly failed to record vital submissions made by the agency.