News portal NewsClick have claimed that the company's bank accounts have been "virtually frozen" by the Income Tax department, restricting it from paying salaries to employees and consultants. NewClick also said that it will undertake legal measures against this "unjust" and "cruel" action.
"As of the evening of December 18, NewsClick has been unable to make any bank payments due to action by the Income Tax Department," a statement by Newsclick said.
Calling the move a seeming continuation of its “administrative-legal siege” by the government, which it said started in 2021 and included the confiscation of its contributors’ devices earlier this year, NewsClick said its employees now faced an uncertain future.
“Coming at the year-end festive season, this sudden action has left all our employees shocked. Since there is no indication of when our accounts will become accessible, there is uncertainty in the minds of all employees and their families, especially those who are completely dependent on salaries from NewsClick,” it said.
It said the organisation did not receive any intimation of the freezing of accounts and the staff discovered it by chance while trying to make routine payments on Monday evening.
NewsClick and its legal counsel are reviewing the developments, it said, adding that legal appeals against this "unjust and cruel" measure will be initiated at the earliest.
Prabir Purkayastha, the editor-in-chief and founder of the portal, and administrative officer Amit Chakraborty were arrested by the Delhi Police after the October searches. They are in judicial custody at present.