SC issues notice on ED plea against NewsClick case quashing
- The Supreme Court issued a notice on the ED's petition challenging the quashing of the NewsClick money laundering case.
- Justice Joymalya Bagchi remarked that the court was not impressed with the ED's Special Leave Petition.
- The Delhi High Court had quashed the case on May 29, 2026, calling it an abuse of legal process.
- The ED is challenging the dismissal of the case, which originated from 2018 foreign investment allegations.
This legal challenge is distinct from the ongoing UAPA proceedings against the portal.
Bench expresses skepticism over ED petition
During the proceedings, Justice Joymalya Bagchi stated, "we are not very impressed with the ED SLP". The bench, which included Chief Justice of India Surya Kant and Justice V Mohana, heard the petition.
Counsel for the Enforcement Directorate, ASG SV Raju, requested a four-week adjournment during the hearing. He informed the court that the Delhi Police is currently in the process of filing a separate petition to challenge the quashing of the Economic Offences Wing case.
Delhi High Court's May 29 ruling on abuse of process
The court characterized the Enforcement Directorate's allegation that a scheduled offence existed as "totally misconceived and baseless".
The Delhi High Court stated that the case was an "abuse of power against free and impartial journalism". The court observed that the Enforcement Directorate had conducted a "fishing and roving exercise". Consequently, the High Court concluded that the continuation of the Economic Offences Wing FIR was a "gross abuse of the process of law".
High Court findings on lack of criminal activity
The High Court determined the original FIR, filed in August 2020 under IPC sections 406, 420, and 120B, lacked evidence of criminal activity. The court concluded money laundering proceedings could not proceed once the underlying FIR was quashed.
Dispute over foreign investment and operational funds
The dispute originated from foreign direct investment provided to PPK Newsclick Studio Private Limited by the US-based firm Worldwide Media Holdings LLC. The Enforcement Directorate alleged this 2018 investment from the US company was non-existent.
The agency claimed the investment was designed to bypass foreign investment regulations for digital news media. Allegations also included the diversion of funds and the overvaluing of shares. Authorities maintained that funds were improperly used for operational costs.
ED's investigation and 2021 raids
The Enforcement Directorate initiated an Enforcement Case Information Report under the Prevention of Money Laundering Act, using the FIR as the basis for its investigation.
In February 2021, the agency raided the offices and homes of NewsClick employees and its founder. Founder Prabir Purkayastha was detained at his home for more than four days during these raids.
Separation from UAPA proceedings
This legal challenge is distinct from the separate Unlawful Activities Prevention Act case initiated by the Delhi Police Special Cell against the portal and Prabir Purkayastha.
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