Police move Delhi High Court against protection to NewsClick founder from arrest

New Delhi, August 22

The Delhi High Court on Tuesday asked news portal NewsClick’s founder and editor-in-chief to spell out his stand on a petition filed by the Delhi Police seeking to lift an order granting him interim protection from arrest in a case of alleged unlawful foreign funding.

Justice Saurabh Banerjee issued notice to Prabir Purkayastha on the Delhi Police’s plea seeking to vacate a 2021 interim order and directed him to file his reply. The matter will be heard next month.

On July 7, 2021, the high court had granted interim protection from arrest to Purkayastha and directed him to join the investigation.

The Delhi police counsel said in the case, NewsClick received foreign funds for broadcasting news in India in breach of existing laws and a probe has revealed the commission of offences. The police said in a serious matter like this the protection of pre-arrest bail was not warranted.

“The petitioner/accused persons, in conspiracy with their accomplices based abroad, devised a deceitful scheme to obtain and receive funds for undertaking activities as per instructions received from their foreign-based benefactors by disguising the funds received as foreign direct investment,” the application read.

It said the investigation on various aspects, including with respect to identification of entities behind the origin of the funds as well as tracing the money trail to the final end-usage to establish or otherwise, the possibility of abetment of criminal/unlawful acts using the funding was still ongoing.

The court also issued notice to NewsClick director Pranjal Pandey on a similar plea by Delhi Police against interim protection from arrest granted to him.

The Economic Offences Wing of Delhi Police has alleged in the FIR that the company, PPK Newsclick Studio Pvt Ltd, received Foreign Direct Investment (FDI) to the tune of Rs 9.59 crore from M/s Worldwide Media Holdings LLC, USA, during the financial year 2018-19, in violation of the law.

The FIR has alleged the investment was made by greatly overvaluing the shares of the company to avoid the alleged cap of 26 per cent of FDI in a digital news website.

It has also alleged that over 45 per cent of this investment was diverted for the payment of salary/consultancy, rent and other expenses. These payments are alleged to have been made for ulterior motives. (With PTI inputs)

Notice issued, matter to be heard next month

Justice Saurabh Banerjee asked news portal NewsClick’s founder and editor-in-chief to spell out his stand on a petition filed by the Delhi Police seeking to lift an order granting him interim protection from arrest in a case of alleged unlawful foreign funding. The matter will be heard next month