The Enforcement Directorate (ED) has approached the Supreme Court challenging the Delhi high court’s decision to quash the FIR registered against digital news platform NewsClick and its founder-editor Prabir Purkayastha, along with the money-laundering proceedings arising from the case, people familiar with the development said.
In May this year, the Delhi high court quashed the Delhi police’s economic offences wing (EOW) and the subsequent ED’s money laundering probe against the digital platform. The case stems from a 2020 case registered by the Delhi Police’s Economic Offences Wing (EOW) over allegations concerning foreign direct investment received by PPK Newsclick Studio Pvt Ltd, the company that operates the news portal, from US-based Worldwide Media Holdings LLC during the 2018-19 financial year.
ED officials who didn’t want to be named said that they have filed an appeal in the apex court challenging the high court order.
ED had raided the premises of NewsClick and Purkayastha in September, 2021. It alleged that the company had received foreign direct investment of ₹ 29.59 crore from M/s Worldwide Media Holdings LLC USA during 2018-19 by overvaluing its shares, and had diverted 45% of this investment for payment of salary, consultancy, rent, and other expenses for ulterior motives. The agency had also attached a ₹ 4.52-crore flat located in south Delhi’s Saket area, linked to Purkayastha, apart from fixed deposits worth ₹ 41 lakh as part of this investigation.
