NewsClick Alleges Abuse of Legal Process to Stifle Journalism
In a dramatic courtroom showdown at the Delhi High Court, news portal NewsClick has accused investigating agencies of abusing legal proceedings to impose criminal charges against them in an attempt to create a “chilling effect” on independent reporting. The case revolves around the news portal’s request to quash criminal charges filed by the Delhi Police and the Enforcement Directorate, alleging violations of foreign funding laws.
Representing NewsClick, senior advocate Siddharth Agarwal asserted that the criminal cases were orchestrated to “silence” independent and impartial journalism, deter journalists, and generate a climate of fear and self-censorship. PPK Newsclick Studio Pvt Ltd, the parent company of NewsClick, filed the petition in 2021 seeking the quashing of criminal cases related to alleged violations of the Foreign Direct Investment (FDI) law.
Agarwal emphasized that the foreign funds received by the company had been obtained legitimately, and fully compliant with applicable laws. He argued that the charges of criminal breach of trust and cheating under the Indian Penal Code were baseless. The court is now tasked with determining whether the investigating and prosecuting agencies have abused the legal process in this matter.
In a previous hearing, senior advocate Kapil Sibal, representing the petitioner, argued that the case against NewsClick was “completely dishonest.” The allegations in the FIR suggest that PPK Newsclick Studio Pvt Ltd received FDI amounting to ₹9.59 crore from M/s Worldwide Media Holdings LLC USA during the 2018-19 financial year in violation of the law. The FIR contends that this investment was made by overvaluing the company’s shares to evade the 26% FDI cap for digital news websites. Moreover, it alleges that over 45% of this investment was diverted for ulterior motives, violating FDI and other Indian laws while causing a loss to the government exchequer.
The Enforcement Directorate initiated its investigation based on the Delhi Police FIR, conducting searches on the premises of NewsClick and other locations connected to the foreign funds. The legal battle continues as the court is set to convene again on November 9.
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