An adjudicating authority under the Foreign Exchange Management Act has imposed a total penalty of Rs 184 crore on NewsClick founder and editor-in-chief Prabir Purkayastha, the Enforcement Directorate said on Monday.

The Special Director of Enforcement passed the order on Monday following adjudication proceedings based on a complaint filed under Section 16 of the Foreign Exchange Management Act.

The proceedings related to alleged violations of foreign exchange law involving foreign direct investment and foreign inward remittances.

The authority imposed a penalty of Rs 120 crore on PPK Newsclick Studio Private Limited, which owns the news outlet and Rs 64 crore on Purkayastha.

The Enforcement Director said Purkayastha, as director of the company, was found to be in charge of and responsible for its business operations and was therefore held liable under the Act.

The agency alleged that the company received foreign direct investment of approximately Rs 9.5 crore during the financial year 2018-’19 after incorrectly describing its business in official filings, which it said allowed it to bypass certain regulatory requirements.

It also stated that foreign remittances amounting to Rs 82.6 crore, received between 2018-’19 and 2023-’24 and shown as payments for export of services, did not comply with foreign exchange rules, including mandatory reporting requirements such as submission of Software Export Declaration forms.

The probe agency said that the adjudicating authority, after examining records, evidence and submissions from the parties, concluded “that the contraventions were substantial, deliberate and systemic in nature”.

Purkayastha told ThePrint on Monday that he had not yet received the order and had learnt of its existence through press releases and news reports.

“At this stage, therefore, I can only say that we believe there is no basis for such an order and will fight it legally,” he said.

The case pertains to a first information report registered by the Delhi Police in August 2020 against NewsClick for allegedly violating Foreign Direct Investment norms. The Enforcement Directorate then initiated an investigation into the matter after taking cognisance of the Delhi Police’s FIR.

In February 2021, the central agency conducted raids at the Newsclick office and Purkayastha’s home based on the allegations levelled by the Delhi Police. However, no arrests were made during the raids at that time.

In October 2023, the Delhi Police had raided the NewsClick office, along with the residences of nearly 80 journalists and other individuals associated with the portal. Purkayastha was arrested on the same day as the raids.

These raids were linked to another case filed against the news outlet under the Unlawful Activities Prevention Act by the Delhi Police in March 2024, which alleged that it had received funds through Chinese entities “with the intention of undermining India’s sovereignty and territorial integrity”.

The case was registered after The New York Times alleged in an August 2023 report that NewsClick had received money from American businessman Neville Roy Singham, who worked closely with the “Chinese government media machine” to spread its propaganda.

In May 2024, the Supreme Court had declared Purkayastha’s arrest in the case invalid and ordered his release.