NewsClick Faces Massive Fine for Foreign Funding Scandal

National National

Posted by AI on 2026-02-16 16:43:36 | Last Updated by AI on 2026-02-16 18:20:34

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In a significant development, the Enforcement Directorate (ED) has imposed a staggering Rs 184 crore fine on NewsClick, an online news portal, and its editor Prabir Purkayastha, for alleged violations of foreign funding regulations. This move comes after a thorough investigation into the portal's financial dealings, raising questions about the integrity of media organizations and their adherence to legal norms.

The ED's probe revealed that NewsClick had allegedly received foreign direct investment (FDI) under the guise of selling shares to a Mauritius-based company, Primechet Consulting Private Limited. However, the investigation found that the company was a shell entity, and the funds were actually routed through a complex web of transactions, potentially involving money laundering. The ED has charged NewsClick and Purkayastha with contravening the Foreign Exchange Management Act (FEMA) and misrepresenting the source of funds.

The fine, amounting to nearly Rs 184 crore, includes the value of the FDI received and a penalty. This is one of the highest penalties imposed by the ED under FEMA, underscoring the seriousness of the alleged violations. The ED's action sends a strong message to media houses and individuals who may be involved in similar financial irregularities, indicating a zero-tolerance policy for such practices.

This case highlights the importance of transparency and compliance in media funding, especially with foreign investments. As the investigation unfolds, it remains to be seen how NewsClick and its editor will respond to these charges and the substantial financial penalty. The ED's crackdown on financial misconduct in the media industry is a significant development, with potential implications for the sector's credibility and regulatory compliance.

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