The Delhi High Court has quashed a first information report filed by the Economic Offences Wing as well as a case filed by the Enforcement Directorate against news website NewsClick and its editor-in-chief Prabir Purkayastha in connection with allegations of foreign funding.
Justice Neena Bansal Krishna, in a judgement on May 29, held that “not only are the present proceedings only mala fide, but also an arbitrary attack and abuse of powers on the free and impartial journalism of the petitioners.”
The judge said that allowing the case to continue would be “nothing but a gross abuse of the process of the law”.
The first information report filed in August 2020 had accused NewsClick of having received Rs 9.5 crore in foreign direct investment from a United States-based firm named Worldwide Media Holdings LLC by means of an allegedly overvalued share transaction meant to circumvent foreign direct investment regulations, Live Law reported.
The Economic Offences Wing had alleged that a significant part of the funds was siphoned off through salaries, consultancy fees and other expenses, the legal news outlet reported.
However, Krishna noted in her judgement that NewsClick had explained that no regulatory permission was needed at the time for foreign direct investment in digital news.
“In fact, the petitioner had written a letter dated 20.12.2017 to Ministry of Information and Broadcasting requesting a...
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