ED to Challenge Delhi High Court Order Quashing PMLA Case Against NewsClick

PTI, June 11, 2026, New Delhi : The Enforcement Directorate has decided to challenge in the Supreme Court a Delhi High Court order that quashed a money laundering case against news portal NewsClick and its editor-in-chief, Prabir Purkayastha, on charges of violation of FDI rules, officials said on Thursday.

The high court's May 29 order "overlooked or left unaddressed" several critical contentions raised by the prosecution, they said.

Justice Neena Bansal Krishna, in her 41-page judgement, had said that the continuation of the FIR by the Delhi Police's Economic Offences Wing against NewsClick and Purkayastha was "nothing but a gross abuse of the process of law" and once the FIR under predicate offence was quashed, the ED's case in the matter was also liable to be closed.

"Aside from bald assertions of there being a criminal conspiracy, there is not a whisper of any incriminating allegation, which would even remotely suggest the commission of the offence punishable under Section 4 PMLA (Prevention of Money Laundering Act)," the order said.

ED officials said they would file an appeal against the high court's order before the apex court.

The judgment appears to proceed on the basis that there is no deceived victim, they said.

Whereas, officials added, the case of the ED and the EOW was that "false representations" were made to statutory authorities and banks regarding genuineness of investor, nature of funds, source of funds, commercial nature of investment and valuation of shares.

The court failed to consider that cheating need not be confined to the private sector, they said, adding that the inducement of public authorities to act upon false representations can constitute cheating where corresponding wrongful gain/wrongful loss is alleged.

ED officials feel that at the quashing stage, the issue before the high court was whether allegations, if accepted as true, disclose an offence.

Whereas the judgment is based upon whether the ED had conclusively established the allegations, and whether the allegations were ultimately provable, they said.

Officials added that ED investigators had collected emails and recorded statements of various persons, including those working with Purkayastha, to establish that PPK Newsclick Studio Pvt Ltd (the company that owns NewsClick) wanted to get foreign direct investment by "avoiding" government permission.

The purpose of PPK Newsclick Studio LLP was changed to a digital company and different arrangements were made, and investment was received from Worldwide Media Holdings LLC to achieve this, they claimed.