The Enforcement Directorate has filed a petition with the Supreme Court to overturn a May 29, 2026 Delhi High Court ruling that dismissed police and PMLA proceedings against NewsClick over alleged foreign‑fund violations.
The ED argues the High Court misapplied the legal test, junking the Enforcement Case Information Report without examining the merits of the money‑laundering case and ignoring evidence that emerged during a year‑and‑a‑half investigation.
It also cites a June 2021 order that barred coercive action against the respondents, which the ED claims stalled the probe and left the case incomplete.
Central to the dispute is a $1.5 million investment from Worldwide Media Holdings LLC in three tranches; the ED insists only one tranche qualifies as foreign direct investment, raising questions about the timing and conditions of the remaining funds.
The Directorate has presented financial records, internal email threads, and recorded statements from the investigation, arguing that these documents demonstrate probable offence under the Prevention of Money Laundering Act.
Legal scholars point out that cheating can involve inducing harm without direct property loss, and Supreme Court precedent allows a police case to be pursued even if the complaint lacks exhaustive detail.
The Supreme Court has scheduled a hearing to consider the ED’s petition, a decision that could reverse the High Court’s quash and restart the investigation.