New Delhi: Media portal NewsClick on Wednesday contended in the Delhi High Court that investigative agencies are “misusing” the legal process to subject them to criminal prosecution.
NewsClick had urged the High Court to quash cases filed against it for alleged violations of foreign funding laws, contending that the prosecution against it is dishonest, malafide, and meant to harass the organisation, and that now its founder was “sitting in jail” in another case.
Its founder and Editor-in-Chief Prabir Purkayastha and its HR head Amit Chakravarty are currently in jail under the Unlawful Activities (Prevention) Act.
NewsClick has challenged both the Economic Offences Wing (EOW) FIR and the subsequent case initiated by the Enforcement Directorate (ED), accusing the platform of money laundering. It was asserted that no guidelines or norms governing foreign direct investment (FDI) were violated.
On Wednesday, senior advocate Siddharth Agarwal, said that NewsClick is being targeted because it operates as a digital news platform and it is all being done with the intent of creating a chilling effect.
He argued that criminal law is being used as a tool to stifle independent and impartial reporting, and discourage journalists. He asserted that there is no legitimate need for an investigation in this case.
Furthermore, Agarwal stated that foreign funds received by the company were obtained legitimately and in compliance with applicable laws. He also contended that the alleged offenses of criminal breach of trust and cheating under the Indian Penal Code were not substantiated. He said that the court will need to consider whether there is an abuse of the legal process by investigative and prosecuting agencies, taking into account the context of the matter.
The matter will be heard next on Thursday.
Senior advocate Kapil Sibal, representing NewsClick, on Tuesday strongly criticised the prosecution, labelling it as a completely dishonest, malafide complaint filed to harass a media channel. He expressed concern about Purkayastha’s arrest under the anti-terror law and highlighted that the man is 72 years old.
Sibal argued that there was no violation of the law regarding foreign funds from an investor abroad, and even the Reserve Bank of India (RBI) stated that no laws had been violated.
He argued the prosecution was driven by NewsClick’s stance against the establishment.
Counsel for the Delhi Police and the ED, which had initiated its probe based on the Delhi Police FIR, argued that NewsClick’s plea for a copy of the Enforcement Case Information Report (ECIR) had become irrelevant since the Supreme Court had ruled that it was not required to be supplied.
NewsClick had filed a petition in 2021 seeking the quashing of criminal cases against the portal over allegations of violating FDI laws. The allegations in the FIR claimed that NewsClick had received FDI from the US in violation of the law, and the investment was made by overvaluing the company’s shares.
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