CBI FIR against NewsClick, editor-in-chief Purkayastha for FCRA 'violations'

News portal NewsClick faces further trouble as the CBI on Wednesday started a separate investigation by registering a case of violating the country's foreign funding rules and carried out searches at its office and founder-editor Prabir Purkayastha's residence here.

The CBI is the fourth agency investigating NewsClick, which is accused of accepting foreign funding in return for running Chinese propaganda, after the Enforcement Directorate, Income Tax Department and Delhi Police's Special Cell and Economic Offences Wing (EOW).

Purkayastha and NewClick HR head Amit Chakrabarty were arrested by the Special Cell on October 3 under the terror law, invoking protests from the Opposition and media bodies. The latest case deals with allegations of violating the Foreign Contribution Regulation Act (FCRA) provisions.

NewsClick has denied all allegations.

After registering the case, teams of CBI investigators searched the NewsClick office in south Delhi and the residence of Purkayastha where they also quizzed his partner Githa Hariharan, a renowned author.

The agency has named PPK Newsclick Studio Pvt Ltd, Purkayastha, Jason Pfetcher, the manager of Worldwide Media Holdings, and American millionaire Neville Roy Singham, who runs an IT consultancy firm.

According to a statement issued by the CBI, PPK Newsclick Studio Pvt Ltd, which runs the portal, had "received unexplained export remittance of Rs 28.46 crore through four foreign entities" in alleged violation of FCRA provisions.

"There was an unexplained receipt of foreign fund of Rs 9.59 crore by incorrect characterisation of the fund as FDI. The Director of said private company with his close associates had allegedly violated the provisions of FCRA, 2010," the statement said.

The provisions of FCRA, 2010, prohibiting acceptance of foreign contributions by companies engaged in the production and broadcast of audio-visual news or current affairs programmes through any electronic mode and by any correspondent or columnist or writer or owner of such company, were also violated, the CBI alleged.

Earlier this month, the Delhi Police’s Special Cell conducted searches at the premises of 46 journalists, consultants, writers and non-journalist staffers of NewsClick before putting on record the arrest of Purkayastha and Chakravarty. Both were sent to judicial custody on Tuesday.