Case Against NewsClick, Its Founder Prabir Purkayastha Over Foreign Funding Violations

The CBI registered an FIR against NewsClick and its founder Prabir Purkayastha for alleged violation of the Foreign Contribution (Regulation) Act and carried out searches at the office and residence of the portal's founder on Wednesday, officials said. In the FIR, the agency has named as accused the company PPK Newsclick Studio Pvt Ltd, Purkayastha, Jason Pfetcher, the sole manager of Worldwide Media Holdings, and American millionaire Neville Roy Singham, who runs an IT consultancy firm, besides unidentified others.

They said a team of agency officials searched the residence and office of NewsClick founder Purkayastha, who was recently arrested by the Delhi Police in a case under the Unlawful Activities (Prevention) Act.

"The CBI is currently conducting search and seizure operations at the NewsClick office and the residence of our Editor-in-Chief, Prabir Purkayastha. This is the fifth agency that is investigating us. We are cooperating with the authorities," the online news portal posted on X.

It is alleged that the private company (NewsClick) had received an unexplained export remittance of approximately Rs 28.46 crore through four foreign entities in violation of FCRA provisions, the CBI spokesperson said.

He said it is alleged that there was an "unexplained receipt" of foreign funds of approximately Rs 9.59 crore by incorrect characterization of the fund as FDI.

The CBI has alleged that Mr Purkayastha, with his close associates, had allegedly violated the provisions of FCRA, 2010.

"It was also alleged that the provisions of FCRA, 2010, prohibiting the acceptance of foreign contribution by the company engaged in the production and broadcast of audio-visual news or current affairs programme through any electronic mode and by any correspondent or columnist or writer or owner of such company, were violated," the spokesperson said.

In its case against the portal, the Delhi Police had alleged that funds were fraudulently infused by an active member of the propaganda department of the Communist Party of China, Neville Roy Singham.

NewsClick, which hit the headlines after the New York Times reported that it received funds from Singham for allegedly running pro-Chinese propaganda, has denied all the allegations.

The Delhi Police Special Cell arrested Mr Purkayastha and the human resources department head of the portal, Amit Chakravarty, on October 3. Police had also sealed the NewsClick's office in Delhi. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)