NewsClick Faces Rs 184-Crore FEMA Fine Amid Controversy

News portal NewsClick and its editor-in-chief, Prabir Purkayastha, have been penalized with a Rs 184-crore fine by the Enforcement Directorate for allegedly violating FEMA provisions. Allegations include misrepresentation of FDI funds and misdeclaration of services and exports. The investigation, involving 25 statements, was initiated after a 2021 raid.

The Enforcement Directorate has imposed a substantial Rs 184-crore fine on NewsClick and its editor-in-chief, Prabir Purkayastha, for purported breaches of the Foreign Exchange Management Act (FEMA), according to official sources on Monday.

Out of the total penalty, the controlling company PPK NEWSCLICK Studio Private Limited has been hit with a Rs 120 crore fine, whereas Purkayastha faces a Rs 64 crore charge for alleged compliance violations. The specific allegations involve the misrepresentation of foreign direct investment funds and incorrect declaration of services and exports.

This development follows an investigation that saw the ED raid NewsClick's New Delhi office in September 2021, on charges of money laundering. The inquiry has gathered over 25 statements, including that of Prabir Purkayastha. In 2023, the BJP referenced a New York Times report linking the portal to funding from American billionaire Neville Roy Singham, who allegedly collaborates with Chinese government-affiliated media systems.

(With inputs from agencies.)