The Enforcement Directorate (ED) has stepped up its raid on PPK Newsclick Studio Private Limited, the provider of the news portal NewsClick. Reports issued on 16th February 2026 show that the agency made a formal announcement of a penalty notice of ₹184 crore for its alleged breaches of the Foreign Exchange Management Act (FEMA).
The notice is in response to action that is aimed at both the corporate and its official founder Prabir Purkayastha, it is one of the largest fines ever imposed on a digital news platform in India.
Basic Allegations: Foreign Funding & Overvaluation
The ED’s affair, which commenced in 2021, concerns receiving nearly ₹77 crore worth of remittances inflows from abroad from 2018 to 2021. FDI Breach: The agency claims that NewsClick received Foreign Direct Investment (FDI) of around ₹9.59 crore from a US-based Company, Worldwide Media Holdings LLC, by mispricing its shares.
- Surrounding Regulation: Investigators say this was an act of evasion to avoid the 26% FDI cap for digital news media in India.
- Siphoning: A substantial part of these funds (approximately 45%) has been funneled into consultancy fees, rent, and salaries for people associated with the organization for "ulterior motives."
The Legal Context
This is the next leg of a legal proceeding for Prabir Purkayastha.
- Previous Arrest: Purkayastha was previously arrested in October 2023 under the Unlawful Activities (Prevention) Act (UAPA) following a New York Times report alleging the portal received funding linked to Chinese propaganda.
- Invalid Arrest: In a seminal ruling that the Supreme Court made in May 2024, the court found his arrest “invalid” by reason of procedural errors (non-providing an in writing cause of action) and freed him.
- Bail status: The Delhi High Court released him on anticipatory bail in the matters of the money laundering (PMLA) and foreign funding (EOW) cases in July 2025 under his cooperation and documentary nature of the evidence.
Impact of the FEMA Penalty
FEMA is a civil law, unlike the criminal charges of the PMLA. A penalty notice means that the Adjudicating Authority has accepted the allegations of regulatory failings in question by the investigation. If not challenged or settled there would be attachment or civil recovery claims against the portal. NewsClick has made zero commitments to the other charges, arguing that the foreign investments were squarely in compliance with Indian law and the legal actions are an “attempt to muzzle free speech."
