The Enforcement Directorate (ED) has attached a flat in New Delhi’s Saket linked to Prabir Purkayashta, editor-in-chief of NewsClick, in connection with its money laundering probe against the news portal even as the agency is expected to file a charge sheet in the matter, people familiar with the matter said. The federal agency raided Purkayastha’s premises in September 2021.
This week, a New York Times report claimed that the news portal was part of a global network that received funding from American billionaire Neville Roy Singham, who allegedly works closely with the Chinese government media machine.
NewsClick issued a statement on Monday saying the allegations made against it “by certain political actors and sections of the media are unfounded and without basis in fact or law”.
People cited above said the property worth ₹4.52 crore attached under the Prevention of Money Laundering Act (PMLA) was allegedly part of the proceeds of crime. ED is probing “fraudulent” foreign funds infusion of over ₹86 crore into the company that runs the portal.
According to the ED, the company claimed “receiving export remittance” of ₹76.84 crore, ₹1.61 crore, ₹26.98 lakh, and ₹2.03 lakh from Justice and Education Fund Inc USA, The Tricontinental Ltd Inc USA, GSPAN LLC USA and Centro Popular De Midas, Brazil, from March 2018 until the 2021 raids. Officials said the agency has not found any evidence of exporting of services to these entities.
ED is also looking at the foreign direct investment (FDI) transfer of ₹9.59 crore in April 2018 “by way of subscription of shares” of PPK NEWSCLICK Studio Pvt Ltd from a company named Worldwide Media Holdings LLC, USA (a Delaware Limited Liability Company). Officials said the company shut shop soon after this transfer of funds.
{{/usCountry}}ED is also looking at the foreign direct investment (FDI) transfer of ₹9.59 crore in April 2018 “by way of subscription of shares” of PPK NEWSCLICK Studio Pvt Ltd from a company named Worldwide Media Holdings LLC, USA (a Delaware Limited Liability Company). Officials said the company shut shop soon after this transfer of funds.
{{/usCountry}}ED suspects the funds routed through Justice and Education Fund Inc USA belonged to Singham. The agency has alleged Singham is a “close confidant” of Purkayastha and a “Chinese emphasizer”.
ED has recorded the statement of a shareholder of NewsClick’s owner company. The shareholder claimed Singham was the “ultimate owner” of funds received from the Justice and Education Fund, USA, and GSPAN LLC, USA.
The agency claimed a scrutiny of the “funding pattern” of PPK NEWSCLICK Studio Pvt Ltd shows it was created to “upload anti-national news at the instance of Singham as he made all the investment by way of FDI and transferring of export proceeds.”
It alleged Singham was influencing the content of news on the portal, and hence this was a case of “paid news.” The agency found funds were siphoned off for maintenance and renovation works of a flat in Saket allegedly linked to Purkayastha.
ED also attached Purkayastha’s fixed deposits worth ₹41 lakh earlier. It said the company paid ₹17.08 lakh as salary to jailed activist Gautam Navlakha apart from other remittances made to some journalists.
As per NewsClick’s website, it is an independent media organisation dedicated to covering news from India and elsewhere with a focus on progressive movements. It was founded in 2009.