Prabir Purkayastha (File photo)
NEW DELHI: The Enforcement Directorate (ED) has imposed a penalty of Rs 184 crore under the Foreign Exchange Management Act (FEMA) on news portal NewsClick and its editor-in-chief, Prabir Purkayastha, official sources told news agency ANI on Monday.The order levies a penalty of Rs 120 crore on PPK NewsClick Studio Private Limited, the company that owns the portal, while Purkayastha has been fined Rs 64 crore for alleged violations.The entities have been found “contravening” the provisions of FEMA on two primary counts. First involved misrepresentation of foreign direct investment (FDI) funds, and second, misdeclaration of services and exports.NewsClick’s response to the order is awaited.The ED had earlier conducted searches at the portal’s premises in the Saidulajab area of Delhi in September 2021 in connection with a money laundering probe. During the course of the investigation, the agency recorded statements from more than 25 individuals, including Purkayastha.In 2023, the ruling Bharatiya Janata Party (BJP) cited a New York Times report to allege irregularities involving the portal and its promoters. The article had claimed that NewsClick was part of a global network that received funding from American billionaire Neville Roy Singham, who allegedly works closely with the Chinese government media apparatus. The same year, Delhi Police’s Special Cell conducted raids at 30 premises connected with online portal NewsClick as well as its journalists’ houses. Teams of the Delhi Police special cell and Mumbai Police also carried out searches at activist Teesta Setalvad’s residence in Juhu.The Police officials also brought NewsClick editor Prabir Purkayastha, writers Paranjoy Guha Thakurta, and Urmilesh to the special cell offices in the national capital.Founded in 2009, NewsClick describes itself on its website as an independent media organisation focused on reporting news from India and around the world, with particular emphasis on progressive movements.
