ED Moves Supreme Court Against Delhi HC Order Quashing EOW FIR In NewsClick Case

New Delhi: The Enforcement Directorate (ED) has sought the Supreme Court (SC)'s intervention to set aside the Delhi High Court's May 2026 order quashing the Economic Offences Wing (EOW) FIR in the NewsClick case.

The agency argued that the High Court overlooked material evidence and conducted a mini-trial at the stage of a writ petition.

The ED's Special Leave Petition (SLP) challenges the High Court's decision, which held that the essential ingredients of cheating and criminal conspiracy under Sections 420 and 120-B of the Indian Penal Code (IPC) were not made out in the case.

The agency has argued that the High Court failed to consider emails, statements and other material allegedly indicating that the funding arrangements were pre-planned. It has also contended that the court relied heavily on material presented by PPK Newsclick without adequately considering the evidence placed by the ED and the police.

According to the ED, PPK Newsclick received Rs 9.60 crore as foreign direct investment (FDI) in 2018 from an American company.

The agency alleges that shares were issued at an overvalued price of Rs 11,500 each and that the funds were linked to Neville Roy Singham, who has been described by the agency as linked to the Chinese Communist Party.

The agency alleges that the funding was intended to secretly channel money for information and propaganda activities.

In 2020, the Delhi Police's EOW registered an FIR under Sections 120-B and 420 of the IPC. Separate FIRs were also registered by the Delhi Police Special Cell under the Unlawful Activities (Prevention) Act (UAPA) and by the Central Bureau of Investigation (CBI) under the Foreign Contribution (Regulation) Act (FCRA).

The ED subsequently registered two Enforcement Case Information Reports (ECIRs) in connection with the two FIRs.

Apart from the Rs 9.60 crore FDI, the agency identified an additional Rs 92 crore allegedly received by PPK from companies linked to Singham against purported exports of services that, according to the ED, did not exist.

The agency further alleges that part of the funds was used by PPK owner Prabir Purkayastha to purchase a flat in Delhi's Saket area. The ED has attached properties worth Rs 4.93 crore in the case.

In 2025, the ED filed a complaint against NewsClick and Purkayastha over alleged foreign exchange violations involving approximately Rs 92 crore.

As per the agency, the company concealed its status as a news entity to avoid restrictions and approval requirements applicable to foreign investment in the news sector. It also allegedly received about Rs 82 crore through purported export payments without the required documentation.

In February 2026, a penalty of Rs 184 crore was imposed on PPK and Purkayastha in the FEMA proceedings.

The ED has argued that the Delhi High Court's decision to quash the EOW FIR has affected the connected money-laundering proceedings. The agency maintains that the allegations and supporting material required further investigation rather than being conclusively assessed at the writ petition stage.

The SLP also points out that the ED had been unable to proceed with its investigation since 2021 due to court directions restraining coercive action.

Further, the agency has raised concerns that the High Court delivered its judgment six months after the conclusion of the hearing and allegedly failed to record important submissions made by the ED.