The Delhi High Court has set aside the Economic Offences Wing FIR and the Enforcement Directorate's money laundering investigation against NewsClick and its founder-editor Prabir Purkayastha, holding that the case lacked the ingredients of fraud or criminal breach of trust.

Court Grants Relief to NewsClick

The Delhi High Court has quashed the FIR filed by the Economic Offences Wing (EOW) and the Enforcement Directorate's (ED) money laundering investigation in the foreign funding case involving NewsClick and its founder-editor Prabir Purkayastha.

Justice Neena Bansal Krishna, in her order, observed that the agencies had carried out extensive investigations without producing concrete evidence of fraud. The court said that even if the allegations in the FIR were accepted at face value, they did not establish offences such as cheating or criminal breach of trust.

Why the court intervened

The High Court said the EOW FIR and the ED's money laundering case did not disclose the essential ingredients of fraud or breach of trust, and that continuing the proceedings would amount to a misuse of the legal process.

The judgment described the continuation of the proceedings as a misuse of the legal process and noted that fraud requires a deceived party, which was absent in the present case.

Origin of the Foreign Funding Case

The case originated from an FIR registered by the Delhi Police in August 2020. Investigators alleged that NewsClick received foreign direct investment (FDI) worth ₹9.59 crore from an American company, Worldwide Media Holdings LLC.

Authorities questioned the valuation of shares, claiming that shares with a face value of ₹10 were issued at a premium of ₹11,510 per share despite the company not being profitable. Investigators alleged that the structure was designed to bypass the 26% FDI cap applicable to Indian media organisations.

Following the FIR, the ED conducted searches at the offices of NewsClick, as well as at premises linked to directors and shareholders under the Prevention of Money Laundering Act (PMLA). Officials seized foreign currency, documents and digital devices during the raids.

The ED later stated that NewsClick had received ₹38.05 crore in foreign funds over three years, including ₹9.59 crore through FDI and ₹28.46 crore classified as export of services revenue.

Parallel Investigations and UAPA Case

The controversy widened in 2023 after BJP MP Nishikant Dubey referred to a New York Times report in Parliament and alleged that some journalists were involved in spreading Chinese propaganda. Union Minister Anurag Thakur also publicly alleged links between businessman Neville Roy Singham and entities associated with NewsClick.

On August 17, 2023, the Delhi Police Special Cell registered a separate case against NewsClick under the Unlawful Activities (Prevention) Act (UAPA) and sections of the Indian Penal Code relating to promoting enmity and criminal conspiracy.

Purkayastha was arrested on October 3, 2023, in connection with that case. The Special Cell questioned 46 individuals and conducted searches at 31 locations linked to NewsClick and journalists associated with the platform. An 8,000-page chargesheet was filed in March 2024.

Multiple Agencies Involved

NewsClick is operated by PPK NewsClick Studio Private Limited and was founded by Purkayastha in 2009.

Over the course of the investigation, multiple agencies became involved, including the Delhi Police Special Cell, the EOW, the Income Tax Department, the ED and the CBI, each examining different aspects of the allegations related to foreign funding and compliance.

Implications of the High Court Order

The Delhi High Court's decision effectively ends the EOW FIR and the ED's related money laundering proceedings against NewsClick and Purkayastha. The court's observations on arbitrary action and the absence of evidence of fraud are likely to be closely examined in future disputes involving financial investigations and media organisations.

The order does not automatically dispose of other proceedings, including the separate UAPA case being pursued by the Delhi Police Special Cell.

The landscape of financial compliance in India is set for a major overhaul. The Central Board of Direct Taxes (CBDT) recently unveiled the draft rules for the New Income Tax Act 2025, introducing a wave of relaxations for everyday consumers and small businesses. Aimed at reducing "paperwork fatigue," the new framework significantly raises the threshold for quoting a Permanent Account Number (PAN) across several categories.

These changes, which are currently open for public feedback, are expected to be finalized by early March and will officially take effect from April 1, 2026.

Major Relief: PAN Exemption for Cash Transactions

In a move that will likely cheer small traders and individual taxpayers, the New Income Tax Act 2025 proposes a massive hike in the limit for cash transactions.

• The New Rule: PAN will now only be mandatory if your total cash deposits or withdrawals exceed ₹10 lakh in a single financial year.

• The Current Contrast: Presently, banks require a PAN for any cash deposit exceeding ₹50,000 in a single day.

By shifting the focus from daily limits to an annual aggregate, the Income Tax Department aims to simplify banking for those who handle frequent but smaller amounts of cash, while still maintaining oversight on high-value annual movements.

Hospitality and Lifestyle: More Room to Spend

For those planning weddings or large family dinners, the documentation burden has been halved. The PAN requirement for hotel and restaurant bills is being increased from the current ₹50,000 to ₹1 lakh.

This revised limit also extends to:

• Convention Centers: Ideal for corporate bookings.

• Event Management: Simplifying payments for planners and decorators.

• Property Deals: For real estate, the PAN threshold has been pushed from ₹10 lakh to ₹20 lakh, reflecting the rising cost of property in urban India.

Wheels and Wealth: New Rules for Vehicles and Insurance

The draft rules under the New Income Tax Act 2025 also bring clarity to the automotive sector. Previously, PAN was mandatory for all four-wheeler purchases, regardless of the price. Under the new system:

• Motor Vehicles: PAN is required only for vehicles (including two-wheelers) priced above ₹5 lakh.

• Insurance: A new "account-based relationship" model will be introduced. While PAN will now be mandatory to open an account with an insurance provider, it aims to create a more transparent "permanent customer account" for all future policy dealings.

The Digital Frontier: Crypto and CBDC

The Income Tax Department is also tightening its grip on the digital economy. Cryptocurrency exchanges will now be legally required to share transaction data with authorities. Furthermore, the Central Bank Digital Currency (CBDC) has been formally recognized as an accepted mode of electronic payment, signaling the government's push toward a regulated digital rupee.

Why This Matters Right Now

These reforms represent a shift toward "trust-based taxation." By raising limits on cash transactions and daily spending, the government is reducing the compliance burden on the middle class. However, by integrating crypto reporting and insurance accounts, it is ensuring that "high-value" wealth remains traceable.

What should you do? Taxpayers have until February 22 to submit feedback on these draft rules. If you frequently deal with transactions near these limits, now is the time to review your financial planning for the upcoming 2026-27 fiscal year.