An adjudicating authority under the Foreign Exchange Management Act imposed penalties totalling Rs 184 crore on NewsClick founder and editor-in-chief Prabir Purkayastha, the Enforcement Directorate said on Monday.
The order was passed by the Special Director of Enforcement after adjudication proceedings initiated on the basis of a complaint under Section 16 of the Foreign Exchange Management Act. The proceedings concerned alleged violations related to foreign direct investment and foreign inward remittances.
Of the total penalty, Rs 120 crore was imposed on PPK Newsclick Studio Private Limited, which runs the news portal, while Rs 64 crore was levied on Purkayastha personally. The enforcement agency said he was held liable as the director responsible for the company’s business operations.
The agency claimed that the company received around Rs 9.5 crore in foreign direct investment during the 2018–19 financial year after misrepresenting the nature of its business in regulatory filings, which allegedly enabled it to bypass certain compliance requirements, Scroll.in reported.
It further stated that foreign remittances amounting to Rs 82.6 crore between 2018–19 and 2023–24, shown as payments for export of services, were not in line with foreign exchange rules, including mandatory reporting such as Software Export Declaration forms.
According to the probe agency, the adjudicating authority, after reviewing records, evidence and submissions from all sides, found the violations to be substantial, deliberate and systemic.
Purkayastha told ThePrint that he had not yet received a copy of the order and had come to know about it only through media reports and official statements. He added that he believed there was no legal basis for the order and that he intended to challenge it in court.
The matter traces back to a first information report filed by the Delhi Police in August 2020 alleging violations of foreign direct investment norms by NewsClick, following which the Enforcement Directorate began its probe. In February 2021, the agency carried out searches at the NewsClick office and Purkayastha’s residence, though no arrests were made at the time.
In October 2023, the Delhi Police conducted fresh raids at the NewsClick office and the homes of nearly 80 journalists and others linked to the portal, during which Purkayastha was arrested. These actions were later linked to a case under the Unlawful Activities Prevention Act filed by the Delhi Police in March 2024, which alleged that the outlet had received funds routed through Chinese entities with the intention of undermining India’s sovereignty and territorial integrity.
The case followed an August 2023 report by The New York Times, which alleged that NewsClick had received funding from Neville Roy Singham, who was described as having close links with Chinese state media networks. In May 2024, the Supreme Court of India ruled that Purkayastha’s arrest in the case was invalid and ordered his release.