Delhi HC Quashes Money Laundering Case Against News Outlet NewsClick, Calls ED Investigation Into the Matter “Abuse of Power”

Key Points

THE DELHI HIGH COURT on May 29, 2026, ruled that the Enforcement Directorate’s (ED) action against independent news outlet NewsClick and its founder Prabir Purkayastha — in relation to a case involving allegations of receiving illegal foreign funding  — amounts to “abuse” of power that targeted free and impartial journalism. The court has dismissed the money laundering case against the news outlet.

Foreign Funding Allegations Against NewsClick Explained

Allegations of money laundering and foreign funding against NewsClick emerged when the outlet was accused of receiving Rs 9.59 crore as foreign direct investment (FDI) from  US-based firm Worldwide Media Holdings LLC. The “illegal” transaction was facilitated through an overvalued share transaction structured to bypass FDI restrictions. Investigators also alleged that funds were being diversified to different routes via salaries and consultancy payments.

Delhi Police’s Economic Offenses Wing (EOW) filed an FIR against NewsClick in 2020 that alleged the FDI that the parent company received violated the foreign investment law, which resulted in loss to government exchequer. Based on the FIR, the ED launched a probe to investigate the matter.

Acting on the FIR, the ED launched an extensive and lengthy probe in which NewsClick staffers were repeatedly summoned and questioned. In February 2021, the agency also raided premises linked to NewsClick and its editors.

See also: ED Raids Former Kerala CM Pinarayi Vijayan’s House in Exalogic-CMRL Money Laundering Case

The high court has quashed both the FIR and the consequent money laundering investigation by the ED. 

Delhi HC Quashes NewsClick Money Laundering Case 

Delivering the judgment, Justice Neena Bansal Krishna, who presided over the hearing, quashed both the EOW’s FIR and the ED money laundering investigation. 

During the hearing, it was reported that the foreign investor had agreed to transfer the money in three installments for a 23.07% stake in PPK Newsclick Studio Pvt. Ltd, the parent company that owns NewsClick. The first installment was received in April 2018.

The high court observed at the time when the first installment of the investment was transferred , there was no restriction on the amount of FDI that online news publications can receive. In January 2018, a notification issued by the Ministry of Information and Broadcasting also stated that no prohibition on such investment was in place.

In the judgement, the Court stated that the investment was an economic decision, which “did not spell out any criminal offence.” It also held that even after more than a year of investigation, the ED couldn't produce any incriminatory evidence against NewsClick.

“Extensive investigations have been carried out by ED for about a year and a half and Petitioners as well as its employees have been summoned and examined many a times, but nothing incriminating till date has been found or placed on record. Aside from bald assertions of there being a criminal conspiracy, there is not a whisper of any incriminating allegation,” the court stated.

See also: Ex-Kolkata DCP Santanu Sinha Biswas Under ED Scanner Over Alleged Extortion Racket Linked to Criminal ‘Sona Pappu’

The court also stated that the ED has conducted a “fishing and roving” exercise on the news outlet even when no evidence of an offense being committed by the outlet existed. While quashing EOW’s FIR, the Court said that the continuation of such FIR was nothing but a “gross abuse of the process of law.”

Rejecting the allegations of diversification of funds and terming it as “baseless,” the court held the salary and consultancy payments NewsClick was undertaking was an “economic decision” which “does not spell out any criminal offence.”

NewsClick’s founder and editor-in-chief Prabir Purkayastha had been under interim protection from arrest since June 2021, while the ED continued its searches in February 2021 in connection with the case.

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