3 months ago
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The adjudicating authorization nether the Foreign Exchange Management Act (FEMA) has passed an bid imposing a punishment of ₹184 crore successful the lawsuit of PPK Newsclick Studio Private Limited, the Enforcement Directorate said connected Monday (February 16, 2026).
The institution owns NewsClick, a integer quality platform, which was founded by its editor-in-chief Prabir Purkayastha.
The adjudication proceedings were initiated connected a ailment nether Section 16 of FEMA filed by the ED alleging contraventions of FEMA and the rules and regulations pertaining to the receipt and utilisation of overseas funds.
According to the ED, the adjudicating authority, aft a elaborate introspection of records, evidence, and submissions of the noticees, held that the Foreign Direct Investment (FDI) amounting to astir ₹9.59 crore was received during 2018-19 by misrepresenting the quality of concern enactment successful statutory filings, thereby bypassing prescribed sectoral conditions and introduction way requirements nether FEMA.
“Foreign inward remittances aggregating to ₹82.63 crore, purportedly received betwixt 2018-19 to 2023-24 towards export of services, were recovered to beryllium successful contravention of FEMA provisions owed to misclassification of exports and nonaccomplishment to comply with mandatory reporting requirements, including submission of SOFTEX forms,” it said.
The adjudicating authorization recovered that the transactions were deliberately structured successful a mode that defeated the objectives of the overseas speech regulatory framework. “Prabir Purkayastha, the manager of the company, was recovered to beryllium successful complaint of and liable for the behaviour of concern astatine the applicable clip and was truthful held liable nether Section 42 of FEMA,” said the ED.
“The adjudicating authorization observed that the contraventions were substantial, deliberate, and systemic successful nature, involving large-scale overseas speech transactions and breach of statutory declarations furnished to regulatory authorities. Therefore, successful workout of powers nether Section 13(1) of FEMA, the pursuing penalties person been imposed by the adjudicating authorization (FEMA): ₹120 crore connected PPK Newsclick Studio Pvt. Ltd.; ₹64 crore connected Prabir Purkayastha, manager of the company,” it said.
In February 2021, the ED had searched the premises of Mr. Purkayastha and the Newsclick office.
