ED Challenges Before Supreme Court Quashing Of FIR, PMLA Case Against NewsClick

The Enforcement Directorate has moved Supreme Court of India against the Delhi High Court order granting relief to digital news platform NewsClick and its founder-editor Prabir Purkayastha by quashing the Economic Offences Wing (EOW) FIR registered against them in 2020 as well as the Enforcement Directorate's (ED) money laundering case arising from it, holding that the allegations failed to disclose offences of cheating, criminal breach of trust or criminal conspiracy.

ED has filed its appeal before the Supreme Court, challenging the Delhi High Court’s May 29, 2026, decision quashing the FIR and money-laundering proceedings.

The agency has argued that the High Court overlooked critical evidence and prosecution submissions. Investigators alleged that NewsClick received ₹9.59 crore in foreign investment through a structure designed to circumvent restrictions on foreign funding of digital news media. The agency further contends that false representations were made to statutory authorities and banks, and that cheating can involve public authorities, not just private victims

Justice Neena Bansal Krishna had passed the judgment on May 29 while allowing three connected petitions filed by M/s PPK NewsClick Studio Pvt. Ltd. and Purkayastha challenging FIR No. 116/2020 registered by the Delhi Police's Economic Offences Wing and the subsequent ECIR registered by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).

The FIR was registered under Sections 406, 420 and 120B of the Indian Penal Code on allegations that NewsClick received foreign direct investment (FDI) from a US-based entity, Worldwide Media Holdings LLC, through an allegedly inflated share valuation structure. The ED subsequently registered a money laundering case on the basis of the FIR.

Examining the allegations, the High Court found that the offence of cheating was not made out even if the prosecution's case was accepted at face value. The Court noted that Worldwide Media Holdings LLC had invested USD 1.5 million in NewsClick, but had never complained of being deceived or cheated.

"For the offence of cheating, it is necessary that there must be an aggrieved person who has been cheated out of his valuable property," the Court observed. It further noted, "There is nothing which has emerged even during the investigations as reflected in the Status Report, that there was any person who was aggrieved or who was cheated by the Petitioner. The offence of cheating even if all the allegations made are admitted, is not established."

The Court also rejected the allegation of criminal breach of trust under Section 406 IPC. Addressing the prosecution's case, Justice Krishna observed: "There may have been a business transaction of investment and purchase of shares by M/s Worldwide Media Holdings LLC on payment of 1.5 Million USD, but by no stretch of interpretation can it be said to be an entrustment by M/s Worldwide Media Holdings LLC or misappropriation by the Petitioner."

High Court rejected the ED's argument that a money laundering investigation could continue on the basis of the offence of criminal conspiracy under Section 120B IPC, which is a scheduled offence under the PMLA and found that the ED had failed to identify any unlawful objective behind the alleged agreement between the parties. "Merely because the parties entered into an agreement is not sufficient to constitute criminal conspiracy, unless the ED is able to show what is the illegal objective or the means which have been adopted by the Petitioners and the other persons which can be termed as criminal conspiracy," the Court observed.

In July 23, 2025, the Court had granted anticipatory bail to Purkayastha in two separate cases, one filed by the ED for alleged money laundering and the other by the Delhi Police’s Economic Offences Wing over foreign funding.

Previously on July 7, 2021, the High Court had granted Purkayastha interim protection from arrest and directed him to join the investigation. The Enforcement Directorate conducted raids at the office of NewsClick after the Delhi Police’s Economic Offences Wing registered an FIR in August 2020. The agency had alleged that NewsClick received foreign funds disguised as foreign direct investment to promote pro-China propaganda through its stories.

As per the FIR filed by the EOW, a case was registered under Sections 406, 420, and 120B of the IPC, and an investigation was launched. During the investigation, the sleuths gathered evidence indicating criminal acts.