Delhi High Court Ruling in Favor of NewsClick
In a significant ruling, the Delhi High Court has annulled the money laundering case against NewsClick, an independent digital news media outlet, and its founder, Prabir Purkayastha. The case was initiated by the Enforcement Directorate (ED) concerning alleged foreign direct investment (FDI) violations. The court found the actions of the ED to be an overreach and a misuse of authority against independent journalism.
Judgment Details
Justice Neena Bansal Krishna delivered the judgment on May 29, wherein she nullified the First Information Report (FIR) lodged by the Economic Offences Wing (EOW) and the subsequent proceedings by the ED under the Prevention of Money Laundering Act (PMLA). The judgment noted that the ED’s allegations lacked substantive grounds, describing their actions as a “fishing and roving exercise” into the financial dealings of NewsClick without any evidence of criminal conduct.
Criticism of ED’s Actions
The court criticized the ED’s investigation, stating that it was “an arbitrary attack and abuse of powers on the free and impartial journalism of the petitioners.” Despite extensive investigations over a year and a half, the ED failed to produce incriminating evidence against NewsClick or its employees. The allegations of a criminal conspiracy were termed as “bald assertions” without substantial backing.
Background of the Case
The money laundering allegations were linked to an investment from a US-based company, M/s Worldwide Media Holdings LLC, which was purportedly non-existent. In February 2021, the ED conducted raids at the residences and offices of NewsClick’s founder and staff, with the searches extending over four days.
Legal Representation
Senior Advocates Kapil Sibal and Dayan Krishnan, along with advocates Arshdeep Singh Khurana, Harsh Srivastava, Sidak Singh Anand, Shreedhar Kale, Nikhil Pawar, and Peeyush Bhatia, represented Prabir Purkayastha. On the opposite side, Additional Solicitor General SV Raju, Special Counsel Zoheb Hossain, and advocates Kanishk Maurya, Harik Sabharwal, Pranjal Tripathi, Kunal Kochar, and Siddharth Kumar appeared for the ED.
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This decision marks a significant victory for NewsClick and sets a precedent regarding the protection of media entities from arbitrary legal actions. The case is still unfolding, and further developments are anticipated.
