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Justice Subramonium Prasad of the Delhi High Court today recused from hearing Newsclick Founder Prabir Purkayastha’s plea seeking quashing of an FIR in connection with a money laundering case registered by the Enforcement Directorate against Purkayastha.

Justice Prasad has listed the matter for hearing on June 30 before another bench of the Court.

Earlier the Vacation bench led by Justice Jasmeet Singh had directed the Enforcement Directorate (ED) not to take any coercive action against Newsclick and its editor Prabir Purkayastha until July 5 in an alleged money-laundering case.

Newsclick and Purkayastha had filed a plea seeking a copy of the Enforcement Case Information Report (ECIR) registered against them on which the bench presided by Justice Jasmeet Singh had issued notice.

In a separate petition by the news portal seeking quashing of the case lodged by the Economic Offence Wing, the Court had sought response from the Delhi Police.

Consequent to an FIR lodged by the Delhi Police, the Enforcement Directorate had raided Newsclick’s offices and the homes of its editors in February of this year and conducted search and seizure activities at the said premises.

The FIR alleged that Newsclick  received Foreign Direct Investment (FDI) to the tune of Rs 9.59 crores from one M/s Worldwide Media Holdings LLC USA during the year 2018-19 which was made by overvaluing the shares of the company.

It was further alleged  that over 45 per cent of the said  investment was siphoned off for the payment of salary/consultancy, rent and other expenses, alleged to have been made for ulterior motives.

The company is therefore alleged to have violated the FDI and other laws thereby causing loss to the government exchequer.

Case Title: PRABIR PURKAYASTHA Vs. DIRECTORATE OF ENFORCEMENT