The Delhi High Court has quashed the First Information Report filed by the Economic Offences Wing and the Enforcement Directorate’s money laundering case against NewsClick and its editor-in-chief, Prabir Purkayastha. The court found that the proceedings, which stemmed from allegations of illegal foreign funding, constituted a gross abuse of the legal process.
The judgment, delivered on 29 May 2026, concluded that the actions taken against the news portal and its editor were arbitrary and lacked legal basis.
According to The Observer Post, Justice Neena Bansal Krishna ruled that the investigations and subsequent legal actions against NewsClick amounted to an “arbitrary attack and abuse of powers on the free and impartial journalism” of the petitioners. The court observed that continuing the proceedings would serve no purpose other than to perpetuate a “gross abuse of the process of law.”
As reported by The News Minute, the court described the Enforcement Directorate’s approach as a “fishing and roving exercise” into the financial affairs of NewsClick and its employees. The judgment noted that despite extensive investigations over a year and a half, no incriminating evidence was found or placed on record by the authorities.
Coverage revealed that the case originated from a 2020 FIR alleging that NewsClick’s parent company received ₹9.59 crore in foreign direct investment from a US-based entity, Worldwide Media Holdings LLC, during the 2018–19 financial year. Investigators claimed the investment involved overvalued share transactions and alleged diversion of funds through salaries and consultancy fees.
The High Court, however, found that at the time of the investment, there was no restriction on foreign direct investment in digital news media. The court cited a 2018 clarification from the Union Ministry of Information and Broadcasting, which stated that online news portals were not subject to print media regulations. “In respect of FDI policy, it was clearly evident that there was no cap on the online publication of news,” the court stated, adding that the investment agreement could not be considered illegal.
“Nothing incriminating till date has been found or placed on record,” the judgment said, highlighting the absence of evidence to support the allegations.
As highlighted in an article by The Indian Express, the court also rejected allegations of cheating and criminal breach of trust, noting that there was no complaint from the foreign investor. The judgment emphasised that for the offence of cheating, there must be an identifiable aggrieved party, which was not present in this case.
The court further observed that expenses such as salaries and rent are standard for a media organisation and do not constitute evidence of siphoning or criminal intent. Analysis showed that the valuation of shares was conducted in accordance with Foreign Exchange Management Act regulations and did not indicate any criminal offence.
The Enforcement Directorate’s raids on NewsClick’s office and the homes of its editors in February 2021, as well as subsequent police actions in 2023 under the Unlawful Activities (Prevention) Act, were also referenced in the court’s review. The court noted that the ED had failed to present any incriminating material despite prolonged investigations as details emerged.
“The judgment has indicated what we have always held,” Prabir Purkayastha stated following the verdict, reflecting the position maintained by NewsClick throughout the proceedings.
In summary, the Delhi High Court’s decision to quash both the FIR and the Enforcement Directorate’s case against NewsClick and its editor was based on the absence of legal grounds, lack of evidence, and the finding that the actions taken were an abuse of process and an attack on press freedom according to the judgment.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.