The Enforcement Directorate (ED) has moved forward by seizing a flat in Saket, New Delhi, which has a connection to Prabir Purkayastha, the editor-in-chief of NewsClick.
Back in September 2021, the federal agency conducted a raid at Purkayastha’s premises. The ED’s search operation extended to the offices of Newsclick Studio and its affiliated entities, along with their Directors and shareholders (totaling ten entities) located in Delhi NCR. This action was taken under the Prevention of Money Laundering Act (PMLA).
The recent move comes as part of the ED’s ongoing money laundering investigation into the news portal. The agency is preparing to file a charge sheet in relation to this matter.
The search yielded significant findings, including foreign currency, documents with potential implications, and digital evidence.
Upon closer examination of the evidence, the investigators identified a suspicious inflow of foreign inward remittance totaling Rs 9.59 crore through FDI, as well as Rs 28.46 crore from the export of services.
During the course of the investigation, it emerged that Prabir Purkayastha, who holds the position of Director at Newsclick, had known Neville Roy Singham from Worldwide Media Holdings LLC since 2017.
When questioned, Prabir allegedly claimed to have no knowledge of Navielle’s company.
The ED’s inquiry also revealed a lack of clarity surrounding the receipt of Rs. 28.46 crore from foreign sources by NewsClick editor Prabir Purkayastha and Newsclick Studio employees.
In response, Newsclick has refuted the allegations.
The ED’s scrutiny of the funding pattern of PPK NEWSCLICK Studio Pvt Ltd indicates that the company was set up to disseminate what the agency terms “anti-national news,” allegedly at the behest of Singham.
The agency’s investigation suggests that Singham had made investments via FDI and transferred export proceeds for this purpose.
The ED previously attached Purkayastha’s fixed deposits amounting to ₹41 lakh. The agency has also pointed out that the company paid a salary of ₹17.08 lakh to incarcerated activist Gautam Navlakha, along with additional remittances made to certain journalists.