Delhi High Court quashes NewsClick case over foreign funding allegations
The Delhi High Court quashed the FIR and money laundering proceedings against news portal NewsClick and its editor-in-chief, Prabir Purkayastha, citing "mala fide and arbitrary" exercise of power. The case stemmed from allegations of foreign funding violations and inflated share valuation to bypass FDI norms. The court found no evidence of criminal conspiracy or cheating, noting that the RBI had approved the transaction and no FDI cap existed for digital news media at the time. It also highlighted the absence of an aggrieved party and rejected claims of siphoning funds. The ruling emphasized the importance of free and independent journalism and the procedural flaws in the UAPA case against Purkayastha.
Key Points
- The Delhi High Court quashed the FIR and money laundering proceedings against NewsClick.
- The court found the action "mala fide and arbitrary" and a threat to free journalism.
- Allegations of FDI violations and inflated share valuation were not substantiated.
- The RBI had approved the foreign remittance, and no FDI cap existed for digital news media at the time of investment.
- The court also noted the absence of an aggrieved party and rejected claims of siphoning funds.
Exam Facts
- The case involved NewsClick and its editor-in-chief, Prabir Purkayastha.
- The FIR was registered by the Economic Offences Wing (EOW) of Delhi Police.
- The Enforcement Directorate (ED) initiated proceedings under the Prevention of Money Laundering Act (PMLA).
- The Unlawful Activities (Prevention) Act (UAPA) was also invoked against Purkayastha.
- Justice Neena Bansal Krishna delivered the High Court ruling.
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