The Delhi High Court, on May 29, dismissed the Enforcement Directorate’s ECIR and the Delhi Police’s FIR, arguing that the alleged Rs 9.59 crore FDI from Worldwide Media Holdings fell within permissible limits and that no criminal offence could be established. It found that the investment was an economic decision, not a criminal act, and that the allegations of cheating, fraud or siphoning lacked concrete evidence.
The ED, however, alleges that the high court failed to examine the money‑laundering case under the Prevention of Money Laundering Act (PMLA) and that a five‑month delay in pronouncing its judgment undermined the investigation’s integrity. The ED spokesperson Aruna Kumar said the delay was "inordinate" and called for the Supreme Court to intervene.
NewsClick’s parent company, PPK Newsclick Studio Pvt. Ltd., had reportedly over‑valued its shares to bypass the 26% foreign‑investment cap for digital news outlets; a significant portion of the investment was allegedly diverted as salaries and consultancy fees. Editor‑in‑chief Prabir Purkayastha has been questioned twice but no incriminating evidence has been found.
The Supreme Court has not yet scheduled a hearing for the ED’s appeal, leaving the quashed case in limbo. If the Court upholds the Delhi High Court’s ruling, the money‑laundering charges will remain dismissed.