NEW DELHI: The Delhi High Court has quashed two cases lodged against NewsClick and its editor-in-chief Prabir Purkayastha over alleged violation of Foreign Direct Investment norms, calling the probe a “gross abuse of the process of law”.
The cases were registered by the Delhi Police Economic Offences Wing and the Enforcement Directorate. The EOW had alleged that NewsClick’s parent company, PPK Newsclick Studio Pvt Ltd, received `9.59 crore as FDI in violation of foreign investment rules during 2018-19. Based on the FIR, the ED also registered a money laundering case.
In a May 29 judgment, Justice Neena Bansal Krishna held that the investment was an economic decision and did not disclose any criminal offence. The court noted that there was no restriction on receiving FDI in digital media at the relevant time.
The judge also observed that there was no complaint from the alleged victim company and termed the allegations of siphoning off funds through salaries, rent and consultancy fees untenable. The court said the ED had failed to place any incriminating material on record despite prolonged investigation. Other cases against NewsClick and Purkayastha, including a UAPA case, remain pending.