The Delhi Police’s special cell was on Tuesday raiding the homes of at least six journalists in connection with the probe into the alleged foreign funding of news portal NewsClick.
A police officer confirmed the raids were being carried out but declined to comment on whether the action was in continuation of an ongoing Enforcement Directorate (ED) probe or the special cell has filed a fresh case.
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Saturday 23 Nov. 2024
“The raids were on people associated with NewsClick, but we have not arrested anyone. We are carrying out searches and questioning some persons,” said the officer. He added over six raids were being carried out. “A detailed briefing for the press is likely later in the day,” the officer added.
Abhisar Sharma, one of the journalists, wrote on social media platform X: “Delhi Police landed at my home. Taking away my laptop and phone…”
The ED in August attached a flat linked to NewsClick editor-in-chief Prabir Purkayashta’s in New Delhi’s Saket in connection with its money laundering probe against the news portal. The federal agency also raided Purkayastha’s premises in September 2021.
The property was attached in the week a New York Times report claimed that the news portal was part of a global network that received funding from American billionaire Neville Roy Singham, who allegedly works closely with the Chinese government media machine.
NewsClick issued a statement saying the allegations made against it “by certain political actors and sections of the media are unfounded and without basis in fact or law”.
The ED is probing “fraudulent” foreign funds infusion of over ₹86 crore into the company that runs the portal. According to the ED, the company claimed “receiving export remittance” of ₹76.84 crore, ₹1.61 crore, ₹26.98 lakh, and ₹2.03 lakh from Justice and Education Fund Inc USA, The Tricontinental Ltd Inc USA, GSPAN LLC USA and Centro Popular De Midas, Brazil, from March 2018 until the 2021 raids. Officials said the agency has not found any evidence of exporting services to these entities.
The ED was also looking at the foreign direct investment (FDI) transfer of ₹9.59 crore in April 2018 “by way of subscription of shares” of PPK NEWSCLICK Studio Pvt Ltd from a company named Worldwide Media Holdings LLC, USA (a Delaware Limited Liability Company). Officials said the company shut shop soon after this transfer of funds.
The ED suspects the funds routed through Justice and Education Fund Inc USA belonged to Singham. The agency has alleged Singham is a “close confidant” of Purkayastha and a “Chinese emphasizer”.
The ED has recorded the statement of a shareholder of NewsClick’s owner company. The shareholder claimed Singham was the “ultimate owner” of funds received from the Justice and Education Fund, USA, and GSPAN LLC, USA.
The agency claimed scrutiny of the “funding pattern” of PPK NEWSCLICK Studio Pvt Ltd shows it was created to “upload anti-national news at the instance of Singham as he made all the investment by way of FDI and transferring of export proceeds.”
It alleged Singham was influencing the content of news on the portal, and hence this was a case of “paid news.” The agency found funds were siphoned off for maintenance and renovation works of a flat in Saket allegedly linked to Purkayastha.
The ED also attached Purkayastha’s fixed deposits worth ₹41 lakh earlier. It said the company paid ₹17.08 lakh as salary to jailed activist Gautam Navlakha apart from other remittances made to some journalists.
As per NewsClick’s website, it is an independent media organisation dedicated to covering news from India and elsewhere with a focus on progressive movements. It was founded in 2009.
