New Delhi: The allegation that it received “unexplained export remittance” to the tune of Rs 28.46 crore from four foreign-based entities and committed “gross violations” of the Foreign Contribution (Regulation) Act, 2010, formed the basis of the First Information Report (FIR) lodged by the Central Bureau of Investigation (CBI) against NewsClick and others on 7 October.
The FIR, a copy of which is with ThePrint, was lodged after the CBI received a communication in this regard from the Ministry of Home Affairs (MHA) in August this year. The complainant in the case, an undersecretary in the MHA, further alleged that NewsClick received additional funding amounting to Rs 9.59 crore from a US-based entity “in contravention of provisions of the FCRA Act”.
Besides PPK Newsclick Studio Pvt. Ltd, the FIR names its founder-editor Prabir Purkayastha, ‘investor’ Neville Roy Singham and his associate Jason Pfetcher, among others, as the accused.
On Wednesday, NewsClick in a post on X said the CBI conducted “search and seizure operations” at its office and Purkayastha’s residence, adding “this is the fifth agency that is investigating us”.
The CBI is currently conducting search and seizure operations at the NewsClick office and the residence of our Editor-in-Chief Prabir Purkayastha. This is the fifth agency that is investigating us. We are cooperating with the authorities.#NewsClickRaids #NewsClick…
— NewsClick (@newsclickin) October 11, 2023
“The main allegation is that M/s PPK Newsclick Studio Pvt. Ltd. received unexplained export remittance of Rs. 28.46 Crores from four foreign entities in alleged violation of FCRA, 2010,” read the FIR.
It added, “Further M/s Worldwide Media Holding LLC, USA funded Rs. 9.59 Crores through FDI into PPK Newsclick in contravention of provisions of FCRA Act, 2010. The complaint discloses the gross violations of the provisions of FCRA Act, 2010 by Prabir Purkayastha along with his close associates namely Jason Pfetcher, and Neville Roy Singham to infuse opaque foreign funds in M/S PPK Newsclick Studio Pvt. Ltd.”
Section 3(1)(g) of the original FCRA states that “no foreign contribution shall be accepted by any association or company engaged in the production of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (l) of section 2 of the Information Technology Act, 2000 or any other mode of mass communication”.
ThePrint had reported earlier that there was infusion of Rs 9.59 crore for a 7.69 percent stake in PPK Newsclick Studio Pvt Ltd in 2018-19 and that starting the next financial year, “export of services” became the news portal’s primary mode of revenue. The “export of services” accounted for 99.87, 99.97 and 99.95 percent of its total revenue in the financial years 2019-20, 2020-21 and 2021-22, respectively.
In a statement it issued earlier this month, NewsClick maintained that “all funding received” by it “has been through the appropriate banking channels and have been reported to the relevant authorities as required by law, as substantiated by the Reserve Bank of India in proceedings before the High Court of Delhi”.
UAPA case, Singham & Pfetcher
The Delhi Police Special Cell had on 3 October arrested NewsClick’s founder-editor Prabir Purkayastha and administrative officer Amit Chakraborty in connection with a case filed against them under various provisions of the Unlawful Activities Prevention Act (UAPA).
In August, The New York Times reported that NewsClick received funding from a network with links to US-based millionaire Singham, which it said was part of a “global web of Chinese propaganda”. It added that Indian authorities raided NewsClick, “accusing it of having ties to the Chinese government but offering no proof”.
The claim that NewsClick received funding from Singham was first made by the Enforcement Directorate (ED) in 2021.
NewsClick has maintained that it “does not propagate Chinese propaganda” or “take directions from Neville Roy Singham regarding the content published on its website”.
Further, Jason Pfetcher, the ‘manager’ for WorldWide Media Holdings (WHM) — a US-based for-profit group whose investment in NewsClick was the basis for the UAPA case filed against the news portal by the Delhi Police, said in a statement on 7 October that WMH is a ‘not-for profit investment vehicle wholly owned and operated’ by People’s Support Foundation (PSF).
“All funds to PSF came from the sale of ThoughtWorks” — Chicago-based software consultancy of which Singham is founder and former chairman — Pfetcher added.
(Edited by Amrtansh Arora)
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