The Enforcement Directorate has approached the Supreme Court challenging the Delhi High Court’s May 29, 2026, decision quashing the police case and money-laundering proceedings against news portal NewsClick over alleged violations involving foreign funds.
Probe Agency Says Police Case Not ‘Encyclopedia’
The agency has also relied on Supreme Court judgments to argue that a police case need not contain every detail of the alleged offence. The agency has argued that the allegations and the material gathered during the investigation warranted further proceedings. The ED has also challenged the High Court’s decision to junk the ECIR, arguing that it is an internal document and is not equivalent to a case registered by the police.
The relevant test is whether the information in the case provides a reason to suspect the commission of an offence, according to the ED.
Because the High Court had, in June, 2021, ordered that no coercive action be taken against the respondents, the agency has further submitted that the investigation could not be completed.
In its plea, the ED has argued that the High Court junked the Enforcement Case Information Report (ECIR) without examining the merits of the money-laundering case under the Prevention of Money Laundering Act (PMLA).
In its plea, the ED has argued that the High Court junked the Enforcement Case Information Report (ECIR) without examining the merits of the money-laundering case under the Prevention of Money Laundering Act (PMLA). The ED has challenged the High Court’s finding that no incriminating material had emerged despite the investigation continuing for around a year and a half. READ | ‘Abuse Of Law’: Delhi High Court Cancels Probe Agency ED’s Cases Against NewsClick The ED has argued that, at this stage, the court is required to examine the allegations and not determine whether incriminating material has been found. It has claimed that its applications seeking clarification and vacation of the stay remained pending for around three years, effectively restricting its ability to fully investigate the case. The agency has also alleged that the High Court failed to consider evidence and incriminating material placed on record by the ED. The agency has claimed that only one tranche was received as foreign direct investment and has questioned the circumstances in which the company received foreign funds. The ED has also cited the company’s financial records, email communications concerning the incorporation of Worldwide Media Holdings LLC, and statements recorded during the investigation. The agency has argued that cheating is not limited to cases where a person is directly deprived of property. It has submitted that the offence can also involve intentionally inducing a person to act, or refrain from acting, in a manner that causes or is likely to cause harm to their body, mind, reputation or property. The agency has further submitted that junking an ECIR does not, by itself, bring an investigation under the PMLA to an end.
In its plea, the ED has referred to alleged discrepancies surrounding foreign investments received by PPK Newsclick Studio Private Limited, including an agreement with Worldwide Media Holdings LLC for an investment of $1.5 million in three tranches. It has also argued that the High Court exceeded its jurisdiction by examining disputed questions of fact while exercising its inherent powers under Section 482 of the Code of Criminal Procedure.
The High Court applied the wrong legal test while quashing the proceedings at the investigation stage, according to the agency. READ | “Arrest Void”: Supreme Court Orders Immediate Release Of NewsClick Founder It has further challenged the High Court’s conclusion that the allegations did not disclose the offences of cheating and criminal conspiracy.
