The Enforcement Directorate (ED) has approached the Supreme Court challenging a Delhi High Court order that quashed the money laundering case against news portal NewsClick and its founder-editor, Prabir Purkayastha, over alleged irregularities in foreign investment.
In its appeal, the agency has argued that the High Court did not adequately examine the evidence and material submitted in support of its allegations. The ED has also questioned the delay in delivering the judgment, which was pronounced nearly six months after the matter was reserved. The appeal is yet to be listed for hearing.
The case originates from a 2020 First Information Report (FIR) registered by the Delhi Police’s Economic Offences Wing. The complaint alleged that PPK Newsclick Studio Pvt Ltd, the company operating the news portal, received foreign direct investment of ₹9.59 crore from US-based Worldwide Media Holdings LLC during the 2018-19 financial year in violation of rules governing foreign investment in digital news media.
Investigators alleged that the company’s shares were overvalued to bypass investment restrictions and that a portion of the funds was diverted towards expenses including salaries, consultancy fees and rent. The ED subsequently initiated proceedings under the Prevention of Money Laundering Act.
On May 29, the Delhi High Court quashed both the police FIR and the ED’s money laundering proceedings. It held that the allegations, even if accepted, did not establish the essential elements of the offences invoked in the case. The court also observed that the investigation had not produced incriminating material sufficient to support the money laundering allegations.
The ED’s challenge now places the High Court’s decision before the Supreme Court, which will consider the agency’s objections if the matter is taken up for hearing.