New Delhi, June 11: In a significant development in the high-profile foreign funding case, the news portal NewsClick and its Editor-in-Chief Prabir Purkayastha have received major relief from the Delhi High Court. The court has quashed the First Information Report (FIR) filed by the Delhi Police’s Economic Offences Wing (EOW) and the Enforcement Directorate’s (ED) Enforcement Case Information Report (ECIR).
The High Court stated that there was an abuse of law in this case. It clarified that the Foreign Direct Investment (FDI) received by NewsClick did not violate any laws. The court also noted that no evidence emerged during the investigation to prove that Prabir Purkayastha had committed fraud with any individual.
The High Court remarked that even if all allegations in the FIR were assumed to be true, they would not constitute an offense under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC). The court further mentioned that when the relevant investment was received in April 2018, there were no restrictions on foreign investment (FDI) in digital news media.
In fact, the Delhi Police’s Economic Offences Wing had registered a case against NewsClick and Prabir Purkayastha in 2020. The allegations stated that the company inflated the value of its shares to bypass the alleged 26% limit on foreign investment in digital media, receiving approximately ₹9.59 crore as foreign investment.
Investigating agencies also claimed that NewsClick had received illegal funding worth crores from entities abroad, particularly linked to China. It was alleged that this money was used to create an anti-India atmosphere and spread purported Chinese propaganda.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
