Supreme Court Issues Notice On ED Plea Against Quashing Of FIR, ECIR Against NewsClick, Founder

The Supreme Court on Friday issued notice on the Enforcement Directorate's (ED) plea challenging a Delhi High Court judgment that quashed the Economic Offences Wing's (EOW) FIR and the ED's Enforcement Case Information Report (ECIR) against digital news portal PPK NewsClick Studio Pvt. Ltd. and its Editor-in-Chief, Prabir Purkayastha, over allegations of foreign funding.

A Bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana issued notice and directed that the matter be listed after four weeks.

The case concerns allegations that NewsClick received foreign direct investment of approximately ₹9.59 crore from Delaware-based Worldwide Media Holdings LLC in April 2018 by issuing shares at ₹11,510 apiece.

The authorities alleged that the shares were overvalued to circumvent restrictions on foreign investment in digital news media. They further alleged that over 45% of the funds received were spent on salaries, consultancy fees, rent and related expenses.

Appearing for the ED, counsel sought four weeks' time, informing the Bench that the Delhi Police was also preparing to challenge the High Court judgment before the Supreme Court.

"The High Court quashes the FIR and consequently quashes the ECIR. Today, the ED has come against quashing of the ECIR. I'm simply seeking four weeks," counsel submitted.

The counsel further informed the Bench that the Delhi Police was in the process of filing its own Special Leave Petition challenging the High Court's decision.

Seeking a short adjournment, counsel told the Bench, "My Lords, simple adjournment for a month."

The top court accordingly directed that the matter be listed after four weeks.