The Delhi High Court on Friday asked news portal NewsClick and its editor-in-chief Prabir Purkayastha to respond to a plea by the Enforcement Directorate (ED) seeking vacation of an earlier order granting them protection from coercive action in a money laundering case.
Justice Saurabh Banerjee, while issuing notices to the news portal and Mr. Purkayastha, observed that prima facie, the investigation agency’s submissions for vacation of interim protection have merit and require deliberation.
The ED’s application is part of the ongoing proceedings on a petition by the portal seeking a copy of the Enforcement Case Information Report (ECIR) lodged by the ED in the case.
The ED counsel said new material has been unearthed, revealing the commission of offence of money laundering. This is a criminal conspiracy for “paid news” where crores of rupees have come in violation of laws, the ED’s counsel submitted.
“Prima facie, in the opinion of this court, the above contention has merit and requires deliberation. In view thereof, issue notice,” the High Court said and listed the case for further hearing on September 6.
The ED, in its application, said the Supreme Court has deprecated the practice of “blanket no coercive action” orders and such orders during the course of investigation virtually amount to granting anticipatory bail to the accused.
On June 21, 2021, the High Court had directed the ED not to take any coercive action against NewsClick and Mr. Purkayastha in connection with the money laundering case.
The FIR in the case alleged that PPK Newsclick Studio Pvt Ltd received Foreign Direct Investment (FDI) of ₹9.59 crore from Worldwide Media Holdings LLC USA during the financial year 2018-19.
The FIR claimed that the investment was made by greatly overvaluing the shares of the petitioner company to avoid the alleged cap of 26 per cent of FDI in a digital news website.
It further alleged that over 45% of this investment was diverted/siphoned off for the payment of salary/consultancy, rent and other expenses, which are alleged to have been made for ulterior motives.
The ED initiated its probe on the basis of a Delhi Police FIR and has conducted searches on the premises of NewsClick and several other places in connection with the money received from overseas.
