ED IMPOSED A ₹184 CRORE FEMA VIOLATIONS PENALTY ON NEWSCLICK WHICH IS THE LARGEST FEMA-RELATED FINES IMPOSED ON A MEDIA ORGANIZATION IN INDIA

 

ED IMPOSED A ₹184 CRORE FEMA VIOLATIONS PENALTY ON NEWSCLICK WHICH IS THE LARGEST FEMA-RELATED FINES IMPOSED ON A MEDIA ORGANIZATION IN INDIA

PPK NEWSCLICK STUDIO PVT. LTD

On 16 February 2026, the Enforcement Directorate imposed a Rs 184 crore penalty under the Foreign Exchange Management Act (FEMA) against PPK NewsClick Studio Pvt. Ltd. and its founder editor Prabir Purkayasthaz

DETAILS OF THE VIOLATIONS

1. The company misrepresented the nature of its business activity in statutory filings.

2. Foreign inward remittances declared as export of services but found to be in contravention of FEMA provisions.

3. Transactions were intentionally designed to defeat the objectives of the foreign exchange regulatory framework.

 

4.Misrepresentation of foreign direct investment (FDI) funds

 

5, Misdeclaration of services and exports

 

₹184 CRORE PENALTY

The Enforcement Directorate’s adjudicating authority has imposed a ₹184 crore penalty on NewsClick and its founder-editor Prabir Purkayastha for alleged violations of the Foreign Exchange Management Act (FEMA).

DETAILS OF THE PENALTY

- Rs 120 crore penalty levied on the company.

- Rs 64 crore penalty levied on Purkayastha personally, under Section 42 of FEMA, holding him liable for the company's conduct.

LEGAL GROUNDS:

Purkayastha was held liable under Section 42 of FEMA, which makes directors responsible for contraventions during their tenure.

INVESTIGATIONS:

NewsClick and its founder are also under scrutiny by other agencies including the CBI, Delhi Police, and Income Tax Department for alleged violations ranging from money laundering to breaches of the Foreign Contribution Regulation Act (FCRA).

HIGHEST PENALTY UNDER FEMA

This penalty is one of the largest FEMA-related fines imposed on a media organization in India.

R V SECKAR, FCS, LLB , 79047 19295