ED slaps Rs 184-crore FEMA penalty on Newsclick, its founder Prabir Purkayastha

The Enforcement Directorate has issued a Rs 184 crore notice under the Foreign Exchange Management Act against news portal Newsclick and its founder-editor Prabir Purkayastha, intensifying its probe into alleged foreign funding of the media platform.

Officials said the action has been taken under provisions of FEMA as part of an ongoing investigation into suspected violations linked to overseas funds received by the portal.

PROBE INTO ALLEGED FOREIGN FUNDING

The Enforcement Directorate has been examining the financial transactions of Newsclick over allegations that it received foreign funds in contravention of regulations.

The agency has been scrutinising the source of the funds, the route through which they were received and whether they complied with FEMA provisions.

The Rs 184 crore notice is part of this investigation and calls upon the recipients to respond to the alleged contraventions.

ROLE OF NEVILLE ROY SINGHAM UNDER LENS

In the course of the probe, the ED had earlier issued summons to Neville Roy Singham, an American national based in China, over his alleged role in providing funds to Newsclick.

Investigators are examining whether funds linked to Singham were routed to the portal and whether such transactions adhered to Indian foreign exchange laws.

The ED’s action marks a significant escalation in the case, which has drawn attention due to the scale of the alleged financial irregularities and the involvement of foreign entities.

Further proceedings will depend on responses filed by the noticees and the findings of the ongoing investigation.

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