ED levies ₹184 crore FEMA penalty on NewsClick and founder Purkayastha
ED levies ₹184 crore FEMA penalty on NewsClick and founder Purkayastha
ED imposes ₹184 crore FEMA penalty on NewsClick and its founder Prabir Purkayastha amid probes into foreign funding and alleged anti-national activities.
The Enforcement Directorate has levied a total penalty of ₹184 crore on the news portal NewsClick and its founder Prabir Purkayastha for alleged violations of the Foreign Exchange Management Act (FEMA). The agency said the case involves breaches of foreign exchange law, including foreign direct investment and inward remittances, amid broader investigations by multiple agencies including the CBI, Delhi Police and the Income Tax department into allegations ranging from anti-national activity to money laundering and violations of the Foreign Contribution Regulation Act (FCRA).
Of the ₹184 crore, ₹120 crore is charged against NewsClick, while Purkayastha faces a ₹64 crore penalty. Purkayastha was arrested by Delhi Police in October 2023 and is currently out on bail as the probe continues.
As part of the investigation, the ED had issued summons to Neville Roy Singham, an American financier who was based in Shanghai; officials said he did not respond to the summons. A 2023 report in The New York Times had alleged that NewsClick was part of a global network receiving funds to push Chinese propaganda.
The ED stated that the adjudicating authority under FEMA has passed an order in the case of M/s PPK NewsClick Studio Pvt Ltd, noting violations of foreign exchange law involving foreign direct investment and inward remittances. The agency added that the order is part of the ongoing adjudication proceedings against the entity.
