- NewsClick, an English-language news portal, is under probe for alleged foreign investment norms violation and China links.
- The case against NewsClick is based on ₹ 38 crore that the news portal had allegedly received as foreign funding.
- The media organisation has been charged with terrorist activities, terror funding and criminal conspiracy.
- The investigation has also revealed that Mr Purkayastha incorporated a company with Mr. Navlakha allegedly with investments from a US-based defence company, the sources say.
- NewsClick Refutes Charges
- Press Bodies Condemn Crackdown.
Over a dozen media bodies sought Chief Justice of India D.Y. Chandrachud’s intervention on the issue of raids against those linked to NewsClick, a digital news platform. Media persons and activists also turned up in large numbers at the Press Club of India to protest the police action. In a letter to the Chief Justice, the media organizations urged the courts to consider framing norms to discourage the seizure of journalists’ phones and laptops on a “whim”; and to develop guidelines for the interrogation of journalists and for seizures from them, to ensure that “these are not undertaken as fishing expeditions with no bearing to an actual offence”.
NewsClick, an English-language news portal, is under probe for alleged foreign investment norms violation and China links. Its founder, Prabir Purakayastha, and HR Head Amit Chakraborty were arrested by Delhi Police under the anti-terror law – Unlawful Activities Prevention Act.
The case against NewsClick and Mr Purakayastha was registered on August 17, 2023, with UAPA invoked against its executives. The media organisation has been charged with terrorist activities, terror funding and criminal conspiracy.
Newsclick allegedly received 9.6 crore as Foreign Direct Investment (FDI) in April 2018 from the US-based M/s Worldwide Media Holdings LLC, which bought its shares at an inflated premium of 11,510 / share, sources say. The company was incorporated in 2017 by Jason Pfetcher, an associate of Neville Roy Singham, a China resident who is reportedly a contact person of the Communist Party of China. He allegedly infused funds into NewsClick to promote ‘leftist ideology’, sources say.
NewsClick also allegedly received export remittance of ₹ 28 crore between 2018 and 2022 from two US-based entities. But it couldn’t produce any proof for exporting services to the US companies during the probe, sources say. The opaque source of foreign funds of ₹ 38 crore has been traced back to Neville Roy Singham, they say.
Besides the infusion of foreign funds, its end use is also under the scanner of the probe agencies.
The investigation has so far revealed that NewsClick allegedly paid ₹ 21 lakh as salary to activist Gautam Navlakha, an accused in the Bhima Koregaon case, according to the agencies. Human rights activist Teesta Setalvad’s family members too allegedly received ₹ 24 lakh as salary. Newsclick also allegedly paid ₹ 40 lakh as salary to journalist Paranjoy Guha Thakurta, who has been a consultant with the organisation since 2018. Another journalist, Urmilesh, received ₹ 23 lakh salary.
The investigation has also revealed that Mr Purkayastha incorporated a company with Mr Navlakha allegedly with investments from a US-based defence company, the sources say. The investment and the affairs of the company have also been brought under investigation.
Newsclick said it has been targeted by various central agencies since 2021 but no money laundering complaint has been filed yet. It said its offices and residences of officials have been raided by the Enforcement Directorate, the Economic Offences Wing of Delhi Police and the Income Tax Department. The organisation said it is an independent news website and denied claims that it publishes news at the behest of any Chinese entity or authority.”
Several press organizations have condemned the crackdown on NewsClick and stressed on the importance of independent media and free press. Journalist bodies have also written to the Chief Justice of India DY Chandrachud, seeking his intervention. Some political parties too have come out in support of the news portal and journalists who were raided.
(With inputs from agencies)
