ED slaps Rs 184-cr FEMA penalty on NewsClick, editor

“The authority also found that NewsClick received FDI of approximately Rs 9.59 crore during 2018–19 by misrepresenting the nature of its business in statutory filings, thereby avoiding prescribed sectoral conditions and entry-route requirements. Further, foreign inward remittances amounting to Rs 82.63 crore, received between financial years 2018–19 and 2023–24, were allegedly misclassified as export proceeds without proper documentation or mandatory SOFTEX form submissions,” the spokesperson said.

The ED said the transactions had been “deliberately structured” to defeat the purpose of foreign exchange regulations. “Given the findings, penalties of Rs 120 crore were imposed on PPK Newsclick Studio Pvt. Ltd, and Rs 64 crore on Prabir Purkayastha, under Section 13(1) of FEMA,” the spokesperson said. The adjudicating authority noted that Purkayastha, being in-charge of the company’s affairs during the relevant period, was liable under Section 42 of FEMA. The total penalty amounts to Rs 184 crore.

The ED had first raided the premises of NewsClick, located in the Saidulajab area of the national capital, in September 2021 on charges of money laundering. The agency has recorded the statements of more than 25 people, including Purkayastha’s, in the case.

Purkayastha was arrested on October 3, 2023, by the Delhi Police’s Special Cell under the Unlawful Activities (Prevention) Act. He was released on bail by the Supreme Court in May 2025.