Delhi HC seeks Newsclick editor’s stand in police’s plea against interim protection order

Appearing for the EOW, advocate Zoheb Hossain said, “The application discloses the investigation that we have conducted which reveals prima facie cognizable offence. A company running into crores of losses orchestrates, bringing into the country, in the guise of foreign direct investment, monies in breach of existing laws”.

Purkayastha had moved a plea seeking ‘anticipatory bail’ in 2021 in an August 26, 2020 FIR registered under Section 406(Punishment for criminal breach of trust), 420(Cheating and dishonestly inducing delivery of property), 120B (Punishment of criminal conspiracy) IPC .

The EOW had alleged that M/s.PPK Newsclick Studio Pvt. Ltd (where Purkayastha is a director) received foreign direct investment of Rs 9.59 crore from M/s.Worldwide Media Holdings LLC, USA, during the financial year 2018-19 which 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”.

The EOW also alleged that over 45 per cent of the investment was diverted/siphoned off for the payment of salary/consultancy, rent and other expenses. These payments are alleged to have been made for ulterior motives, as per the EOW.

The EOW alleged that the company has violated “FDI and other laws of the country and caused a loss to the exchequer”, the July 2021 order records.

The HC had in its July 7, 2021 order granted Purkayastha interim protection from arrest and directed him to join the investigation. This interim protection had been continued from time to time.

In its plea for vacation of the interim order, the police has said that further investigation in the matter is underway and in a “serious matter like the present case, protection of pre-arrest bail is 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 funds received as foreign direct investment,” the application states.