ED attaches flat linked to NewsClick editor-in-chief Prabir Purkayashta after NYT investigation report

The investigation agency attached the property even as they are expected to file a charge sheet in the case.

Saket: In connection with its investigation into money laundering against the news portal, the Enforcement Directorate (ED) has attached a flat in Saket, New Delhi, belonging to Prabir Purkayashta, the editor-in-chief of the NewsClick news portal, according to people familiar with the situation who were quoted by Hindustan Times.

The investigation agency attached the property even as they are expected to file a charge sheet in the case. In September 2021, a federal organisation conducted a raid at Purkayastha’s residence.

According to the New York Times investigation published this week, the news portal is part of a worldwide network that has received money from American millionaire Neville Roy Singham, who purportedly collaborates closely with the Chinese government’s media apparatus.

In a statement released on Monday, NewsClick said that the accusations made against it “by some political actors and sections of the media” were false and had no legal or factual support.

The property worth 4.52 crore that was attached under the Prevention of Money Laundering Act (PMLA) was reportedly part of the profits of crime, according to the HT report. The ED is looking into a “fraudulent” foreign money influx of over 86 crore into the portal’s operating business.

The company claimed “receiving export remittance” of 76.84 crore, 1.61 crore, 26.98 lakh, and 2.03 lakh from Justice and Education Fund Inc USA, The Tricontinental Ltd Inc USA, GSPAN LLC USA, and Centro Popular De Midas, Brazil, between March 2018 and the raids in 2021, the ED said. According to representatives, there is no proof that services were exported to these organisations.

The FDI transfer of 9.59 crore from Worldwide Media Holdings LLC, USA (a Delaware Limited Liability Company) to PPK NEWSCLICK Studio Pvt Ltd in April 2018 “by way of subscription of shares” is another matter under investigation by the ED. As soon as this money was transferred, according to officials, the firm closed.

According to the agency, the investigation of PPK NEWSCLICK Studio Pvt Ltd’s “funding pattern” reveals that the company was founded to “upload anti-national news at the instance of Singham as he made all the investment by way of FDI and transferring of export proceeds.”

It was claimed that Singham was influencing the news on the website, making this an instance of “paid news.” The agency discovered money was siphoned off to maintain and renovate a Saket property that was reportedly connected to Purkayastha.

Reportedly, the ED has already attached Purkayastha’s fixed deposits totalling 41 lakh. In addition to additional remittances sent to select journalists, it said the company gave imprisoned activist Gautam Navlakha a salary of 17.08 lakh rupees.

According to the website NewsClick, it is a non-profit media outlet devoted to reporting news from India and other countries with an emphasis on progressive causes. 2009 saw its establishment.