Money Laundering Case: Delhi HC Issues Notice to NewsClick Editor-In-Chief Prabir Purkayastha

The Delhi High Court on Friday issued notice on an application filed by the Enforcement Directorate (ED) seeking the vacation of orders that directed no coercive actions against NewsClick and its Founder and Editor-In-Chief, Prabir Purkayastha, in a money laundering case.
A single-judge Justice Saurabh Banerjee has granted NewsClick and Purkayastha a two-week period to respond to the application and has scheduled the matter for a hearing on 6th September. The court has also allowed the probe agency three days to file its rejoinder.
The application has been submitted within the context of an ongoing petition filed by Newsclick and Purkayastha in 2021, seeking access to a copy of the ECIR registered by the probe agency in September 2020. The Enforcement Directorate is seeking the vacation of two orders issued by a co-ordinate bench on June 21, 2021, and July 20, 2021.
During the present hearing, ED’s counsel Zoheh Hossain stated that the case pertains to a “criminal conspiracy of paid news” involving a receipt of 38 crore rupees in violation of laws. Consequently, he urged for an urgent hearing on a prior date.
Conversely, NewsClick’s legal representative argued that urgency is lacking in a matter that has been pending for two years and pointed out that ED has frequently sought adjournments in previous hearings.
The court duly noted ED’s assertion that it has uncovered additional material indicating the commission of money laundering and other scheduled offenses by NewsClick.
In issuing the notice, the court expressed a prima facie opinion that ED’s application and submissions hold merit and warrant deliberation.
ED’s application highlights that despite interim protection being ordered until the next hearing, the matter has not been taken up in subsequent dates or subjected to effective hearings, thus rendering the order in effect until the present time.
Furthermore, the application emphasized that additional material has surfaced during further investigation, revealing the commission of money laundering offenses and scheduled offenses. This information has been communicated to the predicate agency via an appropriate communication under Section 66(2) of the PMLA.
In February 2021, ED conducted raids on the premises of NewsClick and the residences of its editors in connection with the money laundering case, specifically for the purpose of search and seizure.
The allegations in the FIR registered by the Economic Offences Wing of the Delhi Police assert that PPK Newsclick Studio Pvt Ltd received foreign direct investment by inflating the value of shares to circumvent the 26% FDI cap requirement. The estimated FDI amount involved is ₹9.59 crore.