Now, a Rs 184 crore FEMA penalty on NewsClick, editor-in-chief, courtesy ED

The Enforcement Directorate (ED) has imposed a Rs 184 crore penalty under the Foreign Exchange Management Act (FEMA) against news portal NewsClick and its editor-in-chief Prabir Purkayastha, official sources said on Monday.

According to sources, the adjudication order states that the company owning the portal — PPK NewsClick Studio Private Limited — has been penalised Rs 120 crore, while Purkayastha faces a separate penalty of Rs 64 crore for alleged violations.

The entities have been found “contravening” FEMA provisions on two counts, including alleged misrepresentation of foreign direct investment (FDI) funds and misdeclaration of services and exports, sources said. Under FEMA procedure, the noticees may challenge the order before the appellate authority in accordance with law.

A response from NewsClick on the development was awaited at the time of filing this report.

The ED had earlier conducted searches at the portal’s premises in the Saidulajab area of the national capital in September 2021 as part of a money laundering probe. The agency has recorded statements of more than 25 people in connection with the case, including that of Purkayastha, officials said.

Separately, the portal and its founder have also been facing proceedings under the Unlawful Activities (Prevention) Act (UAPA). In October 2023, the Delhi Police Special Cell registered a case alleging that funds received by the organisation were linked to activities prejudicial to India’s sovereignty and integrity.

Purkayastha was arrested in that case, and the matter has since seen multiple rounds of litigation before courts concerning remand, access to case documents and procedural safeguards. The accused have denied wrongdoing, and the cases remain under judicial consideration.

Legal observers note that adjudication under FEMA is civil in nature and distinct from criminal proceedings such as those under UAPA, even if certain factual allegations overlap across investigations.

Political reactions to the case have surfaced earlier. In 2023, the Bharatiya Janata Party (BJP) cited a report by The New York Times to allege wrongdoing by the portal and its promoters. The report had claimed that the outlet was part of a global network that allegedly received funding from American businessman Neville Roy Singham, who was described as having links with Chinese government media initiatives. NewsClick has previously disputed allegations made against it.

Founded in 2009, the portal describes itself as an independent media organisation focused on covering news from India and abroad with an emphasis on progressive movements. The FEMA penalty and the UAPA case are currently at different stages of legal scrutiny.