ED Tells Supreme Court: NewsClick Used ‘Legitimate’ Business Facade to Mask Rs 86 Crore in Illicit Foreign Funding
NEW DELHI: In a significant escalation of the legal proceedings surrounding the NewsClick portal, the Enforcement Directorate (ED) has formally approached the Supreme Court with fresh evidence detailing an intricate web of alleged financial impropriety. The agency’s latest filing contends that the media organization engaged in a systematic strategy to disguise Rs 86 crore in foreign capital as routine commercial transactions to bypass stringent Indian regulations.
Challenging the “Commercial” Narrative
At the heart of the ED’s petition is a direct challenge to the legitimacy of the financial arrangements NewsClick maintained with international entities. According to the federal agency, the portal masqueraded charitable contributions from abroad as standard business investments or payments for services.
The ED has highlighted a specific service agreement with the US-based Justice and Education Fund (JEF) involving the portal Peoples Dispatch. Investigators argue that these payments lacked any genuine commercial logic. The agency claims that the portal’s staff maintained control over content quality and operational terms for Peoples Dispatch even while receiving funds from JEF, suggesting that the “service agreement” was merely a conduit for regular, unauthorized foreign funding rather than an arm’s-length business deal.
Intentional Evasion of Regulatory Oversight
The agency’s submission to the Supreme Court leans heavily on internal communications, including emails and financial records recovered during their investigation. One critical piece of evidence cited by the ED is an August 2017 email from the portal’s former HR head, Amit Chakraborty.
In this correspondence, the agency alleges that company officials discussed modifying corporate documentation specifically to attract foreign capital while bypassing the mandatory oversight of the Ministry of Information and Broadcasting. The ED contends that this explicit internal acknowledgment confirms the portal’s intent to circumvent Indian laws governing foreign contributions to media outlets.
Wider International Connections
The ED’s probe has now extended beyond simple funding queries, touching upon potential links to global ideological and protest movements. Sources close to the investigation suggest that the agency is scrutinizing the portal’s connections to other international organizations, including Tricontinental.
Investigators pointed to a January 2018 email chain that deliberated on how Tricontinental could initiate operations within India. The proposal allegedly involved setting up a private limited company to receive US-based investment, intentionally avoiding the more rigorous regulatory scrutiny that comes with receiving foreign grants as a non-profit entity.
“This has acquired wider relevance following recent media reports concerning tech entrepreneur Neville Roy Singham, Tricontinental, and their alleged ties to international protest movements, including demonstrations in cities like Paris,” a senior official stated.
Evidence-Based Prosecution
To substantiate its claims, the Enforcement Directorate has compiled an extensive evidentiary record. This includes valuation reports, formal contracts, audited company documents, and sworn statements from key individuals, such as Prashanth Radhakrishnan. The agency maintains that these documents prove the shift in ownership and financial control of Peoples Dispatch was part of a broader, calculated effort to maintain a continuous flow of foreign money under the guise of legitimate business activity.
As the case proceeds before the Supreme Court, the ED’s filing marks a pivotal shift, moving from allegations of simple funding irregularities to a documented claim of a concerted, multi-year attempt to mask the true origins of the portal’s capital.
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