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The Supreme Court has sought responses from NewsClick and its founder Prabir Purkayastha on the ED’s plea challenging case quashing.
Why Has the ED Approached the Supreme Court?
A Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana issued notice on November 6, 2026, on a petition filed by the Enforcement Directorate (ED). The agency has challenged the Delhi High Court’s May 29 judgment quashing money laundering proceedings against digital news platform NewsClick and its founder, Prabir Purkayastha.
The High Court had also quashed the First Information Report (FIR) registered by the Delhi Police’s Economic Offences Wing (EOW). The ED’s appeal concerns the consequential proceedings under the Prevention of Money Laundering Act (PMLA). During the hearing, the agency’s counsel informed the Supreme Court that Delhi Police was also preparing to challenge the quashing of the EOW case.
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What Were the Allegations Against NewsClick?
The investigation originated from allegations concerning foreign investments received by NewsClick in 2018 from a US-based company, Worldwide Media Holdings LLC, which investigators alleged was non-existent. The allegations included overvaluation of shares, diversion of funds and violations of foreign direct investment regulations.
In February 2021, the ED conducted searches at the homes and offices of Purkayastha and NewsClick employees. The searches continued for more than four days, during which Purkayastha was detained at his residence. The investigation subsequently became the basis of money laundering proceedings that were later challenged before the Delhi High Court.
What Did the Delhi High Court Decide?
In its May 29 judgment, the Delhi High Court quashed the criminal proceedings arising from the alleged irregularities in NewsClick’s foreign investments. The Court concluded that the case represented an abuse of power against free and impartial journalism.
The High Court also rejected the ED’s position regarding the existence of a scheduled offence, describing the allegation as “totally misconceived and baseless”. It criticised the agency’s investigation as a fishing and roving exercise. While quashing the EOW’s FIR, the Court observed that allowing the proceedings to continue would amount to a gross abuse of the process of law.
What Happens After the Supreme Court Notice?
The Supreme Court’s decision to issue notice gives NewsClick and Purkayastha an opportunity to respond to the ED’s challenge against the High Court judgment. The matter concerns whether the quashing of the underlying criminal proceedings and the consequential money laundering case should stand.
The proceedings also come as Delhi Police prepares a separate challenge to the High Court’s decision concerning the EOW investigation. The Supreme Court has sought responses at this stage, without deciding the merits of the ED’s appeal.
