Delhi High Court Dismisses ED Case Against NewsClick, Citing Abuse of Legal Process

The Delhi High Court has ruled in favor of the news platform NewsClick, quashing both a first information report (FIR) by the Economic Offences Wing (EOW) and a case initiated by the Enforcement Directorate (ED). These legal actions were rooted in allegations concerning foreign funding of the website and its editor-in-chief, Prabir Purkayastha. The judgment, delivered by Justice Neena Bansal Krishna, categorically described the proceedings as a ‘gross abuse of the law’ that undermined free and impartial journalism.

In her ruling issued on May 29, Justice Krishna remarked that the ongoing legal actions were not only baseless but also represented a mala fide attack on journalistic freedoms. She emphasized that allowing the case to progress would amount to a serious misuse of legal authority. The FIR, originally lodged in August 2020, alleged that NewsClick had received ₹9.5 crores via foreign direct investment (FDI) from a U.S.-based entity, Worldwide Media Holdings LLC, purportedly through inflated share transactions aimed at evading Indian regulations regarding FDI.

The EOW’s allegations suggested that a significant portion of the funds was misappropriated under the guise of salaries, consultancy fees, and various expenses. However, Justice Krishna highlighted that NewsClick had adequately clarified that no regulatory permission was required for foreign direct investment in digital news media at the time of the transactions in question. The court noted that NewsClick had proactively reached out to the Ministry of Information and Broadcasting as early as December 2017, seeking clarification on their compliance with the relevant regulations.

This decision has significant implications for the media landscape in India, especially in the context of recent concerns regarding governmental overreach and the freedom of the press. The ruling underscores the need for a balanced approach in regulating media institutions, particularly against the backdrop of growing scrutiny over foreign funding in journalism.

The case against NewsClick had drawn considerable attention, with many viewing it as part of a broader trend of intimidation directed towards independent media voices in India. By quashing the FIR and the ED case, the Delhi High Court has reaffirmed the essential role of a free press in a democratic society, echoing calls from various quarters for greater protections for journalistic practices.

Source: scroll.in