Explained: What Is The Case Against NewsClick? Facts And Charges

NewsClick, an English-language news portal, is under probe for alleged foreign investment norms violation and China links. Its founder, Prabir Purakayastha, and HR Head Amit Chakraborty were arrested by Delhi Police under the anti-terror law - Unlawful Activities Prevention Act - on Tuesday.

The arrests came a day after raids at NewsClick and their journalists, days after a New York Times investigation alleged the news portal had received funding from a network pushing Chinese propaganda.

Charges Against NewsClick

The case against NewsClick and Mr Purakayastha was registered on August 17, 2023, with UAPA invoked against its executives. The media organisation has been charged with terrorist activities, terror funding and criminal conspiracy. It is also accused of promoting enmity between two groups.

The case is based on Rs 38 crore that the news portal had allegedly received as foreign funding. Chinese entities infused funds into NewsClick to propagate pro-Chinese content, say Enforcement Directorate sources.

Newsclick allegedly received 9.6 crore as Foreign Direct Investment (FDI) in April 2018 from the US-based M/s Worldwide Media Holdings LLC, which bought its shares at an inflated premium of 11,510 / share, sources say.

The company was incorporated in 2017 by Jason Pfetcher, an associate of Neville Roy Singham, a China resident who is reportedly a contact person of the Communist Party of China. He allegedly infused funds into NewsClick to promote 'leftist ideology', sources say.

NewsClick also allegedly received export remittance of Rs 28 crore between 2018 and 2022 from two US-based entities. But it couldn't produce any proof for exporting services to the US companies during the probe, sources say.

The opaque source of foreign funds of Rs 38 crore has been traced back to Neville Roy Singham, they say.

How Were The Funds Used

Besides infusion of foreign funds, its end use is also under the scanner of the probe agencies.

The investigation has so far revealed that NewsClick allegedly paid Rs 21 lakh as salary to activist Gautam Navlakha, an accused in Bhima Koreagon case, according to the agencies. Human rights activist Teesta Setalvad's family members too allegedly received Rs 24 lakh as salary.

Newsclick also allegedly paid Rs 40 lakh as salary to journalist Paranjoy Guha Thakurta, who has been a consultant with the organisation since 2018. Another journalist, Urmilesh, received Rs 23 lakh salary.

The investigation has also revealed that Mr Purkayastha incorporated a company with Mr Navlakha allegedly with the investments from a US-based defence company, the sources say. The investment and the affairs of the company have also been brought under investigation.

NewsClick Refutes Charges

Newsclick said it has been targeted by various central agencies since 2021 but no money laundering complaint has been filed yet.

It said its offices and residences of officials have been raided by Enforcement Directorate, the Economic Offences Wing of Delhi Police and the Income Tax Department. "Yet, in the last two plus years, the Enforcement Directorate has not been able to file a complaint accusing NewsClick of money laundering," it said.

The organisation said it is an independent news website and denied claims that it publishes news at the behest of any Chinese entity or authority. "Newsclick does not propagate Chinese propaganda on its website. Newsclick does not take directions from Neville Roy Singham regarding the content published on its website," it has asserted.

Press Bodies Condemn Crackdown

Several press organisations have condemned the crackdown on NewsClick and stressed on the importance of independent media and free press. Journalist bodies have also written to the Chief Justice of India DY Chandrachud, seeking his intervention. Some political parties too have come out in support of the news portal and journalists who were raided.

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