Key Points:
The Enforcement Directorate (ED) has imposed penalties of ₹64 crore on journalist Prabir Purkayastha and ₹120 crore on PPK Newsclick Studio Pvt Ltd.
The penalties were imposed for alleged violations of FDI norms and illegal foreign remittances.
Authorities found that ₹9.59 crore in foreign investment received during 2018–19 was obtained by misrepresenting business activities in official filings.
Prabir Purkayastha, Editor-in-Chief of news outlet NewsClick, was imposed with a penalty of ₹64 crore, while a penalty of ₹120 crore was imposed on PPK Newsclick Studio Pvt Ltd on February 16, 2026. An Adjudicating Authority under the Foreign Exchange Management Act, 1999 (FEMA), imposed the heavy penalties on Purkayastha and his firm for violating Foreign Direct Investment (FDI) norms and accepting illegal foreign inward remittances.
The case against the controversial journalist emerged from a complaint filed by the Enforcement Directorate (ED) under Section 16 of FEMA. The ED alleged that the NewsClick media outlet and its director were involved in violating FEMA rules regarding how foreign funds were received and used.
According to a statement issued by the ED, the Adjudicating Authority observed that the contraventions were substantial, deliberate, and systemic in nature, involving large-scale foreign exchange transactions and breaches of statutory declarations furnished to regulatory authorities.
The statement added, “Therefore, in exercise of powers under Section 13(1) of FEMA, the following penalties have been imposed by the Adjudicating Authority.”
In May 2024, the Delhi Police included Purkayastha in a charge sheet filed in a Delhi court. They accused him and PPK Newsclick Studio of secretly receiving and using funds for illegal purposes.
According to the police, the money was allegedly used to promote harmful activities, including encouraging the Delhi riots, disseminating misinformation about COVID-19, fuelling farmers’ protests, and supporting banned Left-Wing Extremist groups and Pakistan-backed terrorist organisations.
On February 16, 2026, the Adjudicating Authority mentioned in its order, which was drafted after carefully examining documents, evidence, and statements from those involved, that FDI worth ₹9.59 crore was received in 2018–19. The money was received by providing incorrect information about the company’s business activities in official filings. The company therefore avoided complying with the rules and approval requirements set under FEMA.
The order said, “Prabir Purkayastha, Director of the company, was found to be in charge of and responsible for the conduct of business at the relevant time and was therefore held liable under Section 42 of FEMA.”
Inputs from IANS
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