New Delhi: The Enforcement Directorate (ED) has shared information with the FBI to assist its investigation involving Shanghai-based “former US tech mogul” Neville Roy Singham, whom Indian investigators had alleged was a ‘close associate’ of Newsclick founder Prabir Purkayastha, ThePrint has learnt.
The development comes against the backdrop of ED’s probe into allegations that PPK Newsclick Studio received foreign direct investment (FDI) of Rs 9.59 crore from US-based Worldwide Media Holdings LLC in 2018.
Sources in the ED said the Ways and Means Committee of the US House of Representatives has also issued subpoenas to three US-based organisations allegedly linked to Singham—The People’s Forum, BreakThrough News and Tricontinental—seeking their financial records.
A subpoena is a legally enforceable demand for documents or testimony.
The House Ways and Means Committee is a powerful US congressional panel responsible for tax legislation and oversight of tax-exempt organisations. Its inquiry is separate from any criminal investigation being conducted by the Federal Bureau of Investigation, which is a federal law-enforcement agency.
“It is suspected that these entities (The People’s Forum, BreakThrough News and Tricontinental) received over USD 20 million from Neville Roy Singham’s network. The issuance of subpoenas indicates that their financial dealings are under scrutiny,” an ED source said.
“In connection with these developments, the ED has shared information with the FBI to assist its investigation into Neville Roy Singham,” the source added.
Sources said that the three “tax-exempt” entities had earlier resisted congressional subpoenas seeking their financial records.
In a major setback for Indian investigating agencies, the Delhi High Court had in May quashed the First Information Report (FIR) registered by the Delhi Police Economic Offences Wing (EOW) and the money-laundering case pursued by the ED against Newsclick. That leaves the Delhi Police Special Cell’s action against NewsClick and its founder under the UAPA, beginning August 2023.
In a written response, Purkayastha had told ThePrint in September 2023 that NewsClick is an independent news organisation and the allegations by ED are “wholly fictitious”. He added that NewsClick has no ties with the Chinese government or related entities and that it has always complied with relevant Indian laws.
According to him, a “motivated” investigation is being carried out by various authorities in India, which has been challenged by NewsClick before the appropriate courts and authorities.
Also Read: How EOW and ED cases against NewsClick and Prabir Purkayastha collapsed like dominoes
The NewsClick investigation
The ED has alleged that NewsClick issued 8,333 equity shares of Rs 10 each at an inflated premium of Rs 11,510 per share, that the transaction violated Reserve Bank of India (RBI) regulations, and was structured to circumvent the 26 percent FDI cap applicable to digital news media.
The ED further alleged that the funds were subsequently diverted through payments towards salaries, consultancy fees and rent to journalists and freelancers, allegedly for producing what the agency described as “anti-India content”.
According to the ED, Singham is an American national of Sri Lankan descent who resides in Shanghai, and is believed to have close links with the Chinese Communist Party (CCP). While the Delhi Police Special Cell named Singham as an accused in its remand application, the ED described him as a “close confidant” of NewsClick founder Prabir Purkayastha.
Singham, the founder of technology consultancy ThoughtWorks, has been under scrutiny over his alleged financial links with NewsClick and other organisations. An investigation published by The New York Times in August 2023 found that Singham had allegedly established an international network funding nonprofit organisations, media outlets and think tanks that promoted narratives favourable to China. The NYT report described it as an influence campaign defending China and amplifying its propaganda.
ED investigators have alleged that Singham not only financed NewsClick but also exchanged what the agency described as incriminating emails with Purkayastha, journalists, activists and several leaders of the Communist Party of India (Marxist).
According to an ED source, the emails discussed developments in China, coverage of the CPI(M) in China, anti-China sentiment in India, restrictions on Chinese investments and imports, the CPI(M)’s victory in Kerala local body elections, praise for the Chinese government and tributes paid by the CPI(M) to Mao Zedong.
“He (Singham) funds anarchist, ultra-Leftist and separatist entities across different continents through his network,” a second ED source alleged.
“In India, Neville guided and set up PPK Newsclick through Prabir Purkayastha. As part of a pre-planned and pre-conceived strategy, he funded PPK by misdeclaring the nature of its activities,” the source claimed, adding that the goal was to orchestrate information warfare to “subvert India’s sovereignty”.
(Edited by Amrtansh Arora)
Also Read: ‘3-year probe embargo, premature mini-trial’: ED moves SC against HC relief to NewsClick