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Delhi High Court grants anticipatory bail to NewsClick's Prabir Purkayastha in money laundering case

Purkayastha has been accused of overvaluing shares, diverting funds and violation of FDI regulations.

Bhavini Srivastava

The Delhi High Court on Wednesday granted anticipatory bail to NewsClick founder Prabir Purkayastha in the money laundering case initiated against him by the Directorate of Enforcement (ED) in relation to funds received from foreign countries [Prabir Purkayastha Vs Directorate of Enforcement].

Justice Neena Bansal Krishna also granted him anticipatory bail in the case registered by Economic Offences Wing (EOW) of Delhi Police, which formed the basis of the ED's probe.

Justice Neena Bansal Krishna

In February 2021, the ED had raided the homes and offices of the NewsClick founder and employees. The raids lasted for more than four days whilst Purkayastha was detained at home.

Among the allegations made against NewsClick were overvaluing of shares, diverting funds and violation of foreign direct investment (FDI) regulations.

Following this, NewsClick moved the Delhi High Court for directions to the ED to issue a copy of the Enforcement Case Information Report (ECIR). It also sought protection from any form of coercive action in the meantime.

The Court had directed that no coercive action be taken against Purkayastha in June 2021.

In its bail order passed on Wednesday, the Court took into account several factors including the fact that investigation has still not concluded and chargesheet has not been filed despite registration of the case five years ago in 2020.

"In the instant case, the allegations against the Applicant are of misuse and siphoning- off the funds received from the Foreign Companies and violation of the Rules of RBI. As has been rightly pointed out, the cases got registered in 2020 but even in the predicate offence, the investigations have not been concluded nor any Charge-Sheet filed," the Court stated

There is no evidence to suggest that Purkayastha was called to join investigation, the Court noted.

The Court also said that Purkayastha is a respectable aged man of 75 years.

"There is also nothing on record to suggest that the Applicant has been called since 2023 ever to join the investigations. The Applicant is a respectable man, aged about 75 years, having roots in the society. The evidence is essentially documentary in nature and there is no likelihood of tampering with the evidence or of influencing the witnesses," the Court noted.

Accordingly, the Court granted him anticipatory bail on furnishing a personal bond and surety of ₹25,000.

"Considering the prolonged investigations, and in view of the aforesaid circumstances, it is directed that in the event of arrest, the Applicant/Accused shall be admitted to Anticipatory Bail by the Investigating Officer/Arresting Officer," the Court directed.

Senior Advocates Kapil Sibal and Dayan Krishnan with advocates Arshdeep Singh Khurana, Harsh Srivastava, Sidak Singh Anand, Shreedhar Kale, Nikhil Pawar and Peeyush Bhatia appeared for Purkayastha. 

Additional Solicitor General SV Raju, Special Counsel Zoheb Hossain, Panel Counsel Vivek Gurnani and advocates Kanishk Maurya, Harik Sabharwal, Pranjal Tripathi, Kunal Kochar and Siddharth Kumar appeared for ED.

[Read Judgment]

Prabir Purkayastha Vs Directorate of Enforcement.pdf
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