An adjudicating authority under the Foreign Exchange Management Act has imposed a total penalty of Rs 184 crore on NewsClick founder and editor-in-chief Prabir Purkayastha, the Enforcement Directorate said on Monday.

The Special Director of Enforcement passed the order on Monday following adjudication proceedings based on a complaint filed under Section 16 of the Foreign Exchange Management Act.

The proceedings related to alleged violations of foreign exchange law involving foreign direct investment and foreign inward remittances.

The authority imposed a penalty of Rs 120 crore on PPK Newsclick Studio Private Limited, which owns the news outlet and Rs 64 crore on Purkayastha.

The Enforcement Director said Purkayastha, as director of the company, was found to be in charge of and responsible for its business operations and was therefore held liable under the Act.

The agency alleged that the company received foreign direct investment of approximately Rs 9.5 crore during the financial year 2018-’19 after incorrectly describing its business in official filings, which it said allowed it to bypass certain regulatory requirements.

It also stated that foreign remittances amounting to Rs 82.6 crore, received between 2018-’19 and 2023-’24 and shown as payments for export of services, did not comply with foreign exchange rules, including mandatory reporting requirements such as submission of Software Export Declaration forms.

The probe agency...

Read more