The Delhi High Court has quashed cases filed by the Economic Offences Wing (EOW) and the Enforcement Directorate (ED) against digital news platform NewsClick and its founder-editor, Prabir Purkayastha, calling the proceedings a “gross abuse of the process of law” and an attack on free journalism.
The EOW had claimed NewsClick’s parent company, PPK Newsclick Studio, received Rs 9.59 crore as FDI in violation of foreign investment rules during 2018-19. Based on the FIR, the ED also registered a money laundering case.
Justice Neena Bansal Krishna held that even if all allegations in the FIR were accepted in their entirety, the essential ingredients of offenses under Sections 406 (criminal breach of trust) and 420 (cheating) IPC were not made out.
Justice Krishna also noted in her judgment that NewsClick had explained that no regulatory permission was needed at that time for foreign direct investment in digital news.
The court ruled that with the primary EOW FIR dismissed, the ED’s case could not stand due to lack of evidence. The ED is expected to challenge the ruling in the Supreme Court.
While the decision offers major relief, a separate UAPA case remains pending. In May 2024, the Supreme Court had declared Purkayastha’s initial arrest under the UAPA procedurally invalid, leading to his release from jail on bail.
Statement from NewsClick
The news portal hailed the Delhi HC for its “strong stand in support of independent journalism in India.”
Here’s its statement posted on its website.
“Newsclick has always maintained that the numerous cases and charges against it are attacks on the freedom of the press. Newsclick’s only ‘fault’ has been to practice journalism that covers people’s movements.
The Delhi High Court vindicates our position. It also takes a strong stand in support of independent journalism in India.
The Court did not mince its words: It observed (as per Bar & Bench) that the ED proceedings were “not only mala fide, but also an arbitrary attack and abuse of powers on the free and impartial journalism of the Petitioners… apart from bald assertions of there being a criminal conspiracy, there was not a whisper of any incriminating allegation…” …the continuation of the FIR registered by the Delhi Police’s Economic Offences Wing was “nothing but a gross abuse of the process of law….”
This reaffirms our faith in the courts. We thank all our erstwhile staff, associates and contributors, our readers, lawyers, our many friends and supporters, and the very large number of journalists and fellow citizens who have expressed solidarity over the years.
We are confident that the various other proceedings against Newsclick will also be resolved, and so reaffirm freedom of the press.”
