NewsClick’s Foreign Funding Maze Draws Heavy FEMA and UAPA Action

 

On 17 February 2026, the Enforcement Directorate imposed a ₹184 crore penalty under the Foreign Exchange Management Act on NewsClick and its founder-editor, Prabir Purkayastha. The order, comprising ₹120 crore against the company and ₹64 crore personally against Purkayastha, marks one of the most substantial FEMA penalties levied on a digital media entity in recent years.

 

While the matter remains sub judice, the scale of the enforcement action has renewed national attention on the portal’s funding architecture, editorial positioning, and alleged foreign linkages, issues that have been under investigation since 2020.

 

 

Founded in 2009, NewsClick operates under PPK NewsClick Studio Private Limited and presents itself as an independent digital news platform. Headquartered in New Delhi, with an additional office in Mumbai, it publishes content in English, Hindi, and Marathi. The portal lists Purkayastha and Subodh Varma as directors and is affiliated with DIGIPUB, a coalition of digital media organisations.

 

Purkayastha, an engineer by training and an alumnus of Jawaharlal Nehru University, has long been associated with left-leaning activism. Over time, NewsClick positioned itself as a platform focusing on policy critique, social movements, and international affairs.

 

However, investigative agencies have alleged that the portal’s operations extended beyond journalism into activities involving foreign funds received in violation of Indian regulatory frameworks.

 

 

The legal proceedings commenced on 26 August 2020, when the Economic Offences Wing of Delhi Police registered a First Information Report against PPK NewsClick Studio Pvt. Ltd. under Sections 406, 420, and 120B of the Indian Penal Code. Authorities alleged violations of Foreign Direct Investment norms and financial irregularities causing loss to the exchequer.

 

Subsequently, the Enforcement Directorate conducted searches in connection with remittances amounting to ₹30.51 crore. These included:

 

 

 

The agency also examined transactions involving entities such as Justice & Education Fund Inc., G Span LLC, Tricontinental Ltd Inc., and Centro Popular Demidas of Brazil. The largest tranche, ₹19.76 crore, allegedly came from Justice & Education Fund Inc.

 

Investigators questioned the nature of the services provided and whether the inflows complied with FEMA provisions.

 

 

The investigation escalated significantly in 2023 when Delhi Police registered a case under the Unlawful Activities (Prevention) Act. On 3 October 2023, coordinated raids were conducted at nearly 100 locations across Delhi-NCR and Mumbai, targeting journalists, contributors, and associates linked to NewsClick.

 

 

Purkayastha and HR head Amit Chakravarty were arrested under UAPA provisions relating to alleged terrorist conspiracy, funding, and activities prejudicial to Bharat’s sovereignty. Devices, including mobile phones and laptops, were seized during the operation.

 

The FIR cited alleged routing of funds through shell companies, including purported China-linked networks, and claimed that these resources were used for activities such as coverage and mobilisation narratives during the 2020 Delhi riots, campaigns surrounding the CAA and NRC protests, farmer protests, and alleged disinformation concerning COVID-19 and elections.

 

In May 2024, the Supreme Court invalidated the arrests on procedural grounds, observing that copies of the FIR and written grounds of arrest were not supplied within the mandated timeframe. Importantly, the ruling addressed procedural lapses and did not adjudicate upon the substantive allegations, which remain before the courts.

 

 

A Delhi Police chargesheet dated 22 May 2024 alleged financial and editorial connections between NewsClick and individuals accused in the 2020 Delhi riots, including Sharjeel Imam. It claimed that ₹36 lakh was routed towards riot-related mobilisation and that certain editorial narratives aligned with the positions of the accused persons.

 

 

Another chargesheet filed in April 2024 alleged links between Purkayastha and the banned organisation Lashkar-e-Taiba, including claims of financial assistance and active association. These allegations remain subject to judicial scrutiny and have not been conclusively determined by any court at this stage.

 

 

On 5 August 2023, The New York Times published an investigation alleging that NewsClick received funding from a network associated with Neville Roy Singham. The report suggested that entities within this network promoted narratives aligned with Chinese government positions globally, including in Bharat.

 

Indian investigative agencies have referenced such reports while examining whether foreign funds were utilised in ways inconsistent with declared objectives.

 

 

Authorities have argued that NewsClick’s coverage, particularly concerning the CAA protests, Shaheen Bagh, and riot investigations, reflected narratives that could undermine Bharat’s internal security framework. The portal has consistently denied wrongdoing, maintaining that its journalism is constitutionally protected and independent.

 

Critics contend that the investigative action reflects necessary regulatory enforcement in the face of foreign influence risks. Supporters, however, argue that the actions represent pressure on dissenting media voices.

 

 

The matter therefore occupies a sensitive intersection between media freedom, national security, and foreign funding transparency.

 

 

The February 2026 FEMA penalty signals that enforcement authorities believe the alleged violations were substantive and systemic. Whether the order withstands appellate and judicial scrutiny will shape not only NewsClick’s future but also set a precedent for digital media compliance norms in Bharat.

 

 

At present, multiple strands of the case, including FEMA adjudication, UAPA proceedings, and chargesheets alleging riot and terror linkages, remain before the competent courts.