Delhi High Court
Prabir Purkayastha vs Directorate Of Enforcement on 23 July, 2025
Author: Neena Bansal Krishna
Bench: Neena Bansal Krishna
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Pronounced on: 23rd July, 2025
+ BAIL APPLN. 2173/2021, CRL.M.(BAIL) 861/2021
PRABIR PURKAYASTHA
S/o Lt. A.K. De Purkayastha,
Aged about 71 years
R/o D-132, 2nd Floor, Saket,
New Delhi-110017
Email: [email protected]
Mob: +91-98111424462 ....Petitioner
Through: Mr. Kapil Sibal, Sr. Advocate, Mr.
Dayan Krishnan Sr. Advocate with
Mr. Arshdeep Singh Khurana, Mr.
Harsh Srivastava, Mr. Sidak Singh
Anand, Mr. Shreedhar Kale, Mr.
Nikhil Pawar and Mr. Peeyush
Bhatia, Advocates.
versus
DIRECTORATE OF ENFORCEMENT
10-A, Jamnagar House,
Akbar Road, New Delhi-110011
Through its Standing Counsel
Email: [email protected]
Mob: +91-9811191920 .....Respondent
Through: Mr. S.V. Raju, Ld. ASG, Mr. Zoheb
Hossain, Spl. Counsel, Mr. Vivek
Gurnani, Panel Counsel with Mr.
Kanishk Maurya, Mr. Harik
Sabharwal, Mr. Pranjal Tripathi, Mr.
Kunal Kochar and Mr. Siddharth
Kumar, Advocates and Mr. Mohit
Godara, ED(I.O).
ACP Keshav Mathur, Insp. Sanjay
Singh EOW, Mandir Marg.
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CORAM:
HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA
J U D G M E N T
NEENA BANSAL KRISHNA, J.
1. Bail Application under Section 438 of the Code of Criminal
Procedure, 1973 (hereinafter referred to as „Cr.P.C‘) has been filed on
behalf of the Applicant, Prabir Purkayastha seeking Anticipatory Bail in
ECIR bearing ECIR/14/HIU/2020 dated 02.09.2020 under Section 3 and 4
of the Prevention of Money Laundering Act, 2002 (hereinafter referred to
as „ECIR‟).
2. The Applicant submits that he is a respectable and law-abiding citizen
of India having deep roots in the Society and is residing with his Partner. He
is a reputed journalist and is also a Director of M/s PPK Newsclick Studio
Pvt. Ltd., a law-abiding corporate entity incorporated under the Companies
Act, 2013, which owns and operates “newsclick.in” set up in 2009, one of
the most popular and reputed digital media platforms in the country as well
as abroad.
3. The expertise of the Applicant in various issues relating to industry
and technology, has also been recognised by the Government of India. He
has been a member of the National Steering Committee, ASTeC Programme
as well as a Member of the Expert Group on Industrial Application, both of
which are convened under the aegis of the Ministry of Electronics and
Information Technology, Government of India. He has published several
scholarly Articles in various National and International Publications in the
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field of Engineering, Software Technology, Energy Policy and other social
issues.
4. The Newsclick was controlled by a Trust, namely, the Newsclick
India Trust and later from the year 2015, a Limited Liability Partnership i.e.
M/s PP Newsclick Studio LLP. With an intent to receive investment to allow
the LLP to grow and expand, an Agreement dated 01.05.2017 was entered
between M/s PP Newsclick Studio LLP and M/s BGJC Associates LLP.
Further, to enable a smooth inflow of future investment, a decision was
taken by M/s PP Newsclick Studio LLP, to convert the LLP into a private
Limited Company, which was done on 03.06.2017.
5. The Company was approached for FDI and ultimately, an entity by
the name of M/s Worldwide Media Holdings LLC (hereinafter referred to as
„WWMH’) invested the shares of the said Company as FDI.
6. WWMH was incorporated on 29.11.2017 as a Limited Liability
Corporation in USA. During this time, when the possibility of investment by
WWMH in the Company was being discussed, the Applicant wanted to
confirm the regulatory regime around the receipt of FDI by a Company
engaged in the Digital Media business, to ensure any regulatory regime is
fully complied with.
7. The Applicant addressed a Letter dated 20.12.2017, to the Ministry of
Information and Broadcasting requesting for a clarification to the FDI
Policy. The Ministry of Information and Broadcasting gave a Reply dated
05.01.2018 clarified that “online publications on website/web portal do not
fall under the ambit of print media.”
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8. Thus, in accordance with the terms of the Agreement dated
01.05.2017, M/s BGJC and Associates LLP submitted a valuation Report
dated 28.02.2018 wherein the shares of the Company were valued at
Rs.9188 per share. The Independent valuers also issued a Certificate dated
05.02.2018 certifying that the fair value of the equity shares of the Company
may be taken as Rs.9188 per share having face value of Rs.10 each. This
valuation was a legal requirement for the investment by foreign entity into
shares of an Indian entity, in terms of Regulation 11(1), Foreign Exchange
Management (Transfer or Issue of Security by a Person Resident Outside
India) Regulations, 2017.
9. Consequent to the Valuation Report, the parties agreed to a value of
Rs.11,510 per share. The parties entered into an Investment Agreement
dated 20.03.2018 wherein WWMH agreed to invest a total of USD 4.5
Million in three tranches of USD 1.5 Million each, in exchange for a total
23.07% shares of the said Company. The Investment Agreement dated
20.03.2018 was executed between WWMH and M/s PPK Newsclick Studio
Pvt. Ltd.
10. In terms of the Agreement dated 20.03.2018, the first tranche of
investment of USD 1.5 Million, was remitted by WWMH on 11.04.2018, in
exchange for 7.69% shares of the Company. However, the remaining
investment was never remitted or exercised by WWMH. Consequently,
WWMH holds 7.69% shares of the Company.
11. The investment of FDI by WWMH was lawful investment, in terms of
the law regarding FDI in Digital News Media in 2018 and no offence is
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disclosed. Furthermore, FIR has been registered mala fide to cull the free
speech, harass and intimidate the Applicant.
12. It is submitted that the copy of the ECIR, has not been made available
to the Applicant. He had been requesting for the copy since April, 2021,
during which period the investigations have continued and the Applicant has
been examined on various dates. There is no allegation against the Applicant
that he has not co-operated during the investigations.
13. Furthermore, it is apparent from the questioning of the
Respondent/ED during the appearance of the Applicant on 14.06.2021 and
17.06.2021, that they have no bearing to the allegations made against the
Applicant and M/s PPK Newsclick as alleged in the FIR No. 116/2020 dated
26.08.2020, registered at Police Station EOW. The Applicant apprehends
that there is fishing and roving enquiry, aimed at taking coercive steps
against the Applicant on any ground. In the absence of ECIR, the Applicant
is unaware of the exact allegations against him. Writ Petition bearing
W.P.(Crl.) No. 1129/2021 has been filed for seeking the copy of the ECIR.
The Applicant was being made to face any investigation without even
knowing the specific allegations against him.
14. The Respondent on 23.06.2021, on an Application filed by the
Applicant for being supplied with the copy of ECIR, decided to give the
same to the Applicant. It is claimed that this concession had been given by
the ED only after interim Orders of protection were passed in favour of the
Applicant. However, despite stating so, the copy of the ECIR has still not
been supplied to the Applicant, which clearly reflects the mala fide on the
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part of ED. It also indicates that ED intends to take coercive action against
the Applicant.
15. The Anticipatory Bail is sought on the ground that there is no
Scheduled Offence against the Applicant in the present Case and therefore,
there cannot be any offence of money laundering under Section 3 PMLA,
which is a sine qua non for the offence of money laundering.
16. In the end, it is submitted that the Applicant satisfies the triple test of
Flight Risk, influencing witnesses and tampering evidence.
17. The Applicant is a Senior Journalist with deep roots in the society. He
has co-operated with ED and there is no likelihood of him being a flight risk.
18. There is no allegation that he has ever influenced or intimidated the
witnesses. Moreover, the entire evidence is documentary in nature, which
has already been seized by ED and there are no chances of him fleeing from
justice.
19. It is submitted that the Applicant is a Senior Citizen aged about 71
years and suffers from various co-morbidities and any custody of the
Applicant could be deleterious upon his health, especially in the light of the
COVID-19 pandemic.
20. It is, therefore, submitted that he be granted Anticipatory Bail.
21. The Respondent in its Reply, has alleged that M/s PPK Newsclick
Studio Pvt. Ltd. received a FDI of Rs.9.59 Crores from WWMH during the
Financial Year 2018-2019, which was used for allotment of 8333 Equity
shares of Rs.10 each at a premium of Rs.11,510/- per share as against the
allotment of share of Rs.10/- at face value only to the promoters, apparently,
much higher than valued by RBI. The reason for charging huge premium on
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allotment of Share seems to deliberately avoid the restrictions/cap of FDI in
the Digital News website at 26% of the capital, as well as to avoid
Government approval for such FDI.
22. The Investor Company WWMH was incorporated in USA giving the
address of the Chartered Accountant and the Company was reported as
cancelled due to non-payment of Tax as on 01.06.2017. It shows that this
Company had received FDI of Rs.9.59 Crores from WWMH, after a gap of
more than one year from the date when this Company was cancelled. The
reason for incurring such huge losses was excessive payment for
consultancy, salary and rent. For example, salary/consultancy fee of Rs.3.82
Crores and Rs.1.12 respectively was paid during the Financial Year 2018-
2019 even when the total revenue of the Company was Rs.1.10 Crore.
23. More than 45% of FDI was actually diverted / siphoned-off for the
payment of salary/consultation, fees, rent and other such expenses of
promoters/journalists/employees associated with the Company. Prima facie
these facts suggested that the FDI was actually intended to make the
payments for ulterior motives, clandestinely. The above News Portal has
violated the FDI law and other laws of the country and caused loss to the
exchequer. Hence, the FIR was registered and the investigations initiated.
24. It is further contended that the present Application under Section 438
Cr.P.C is pre-mature as the condition precedent is that there has to be a
reason to believe that the Applicant is likely to be arrested. The Applicant
had approached this Court on issuance of Summons under Section 50 of
PMLA. The investigations being conducted by ED is at nascent stage and to
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argue that the Applicant is apprehending arrest would be an admission that
he is guilty of the offence of money laundering.
25. To make any arrest under Section 19, the Respondent Department
necessarily has to comply with the stringent conditions of Section 19
PMLA. The power of arrest is statutory in nature and is circumscribed by
considerations and cannot be exercised at the whim or fancy of an officer.
26. The Apex Court in the case of Ramesh Chandra Mehta vs. State of
West Bengal, AIR 1970 SC 940 has observed that a person who is called to
give a statement, cannot be said to be an Accused of an offence at this stage
and is bound to comply with such directions as mandated under Section 108
of Customs Act. The condition precedent for maintainability of the Bail
Application under Section 438 Cr.P.C is not made out and the Bail
Application is liable to be dismissed, on this ground itself.
27. Furthermore, sufficient safeguards have been provided under Section
19 PMLA, in regard to the arrest of the Accused. The arrest of a person can
be made only after compliance of the stringent conditions of Section 19
PMLA. It also provides adequate protection to individual freedom and
liberty by laying down the norms so that the power of arrest is not abused.
28. The Notice has been given under Section 50 PMLA, to the Applicant
to join the investigations and for producing documents. The blanket
protection given by the Court, to the Accused obstructs, interferes and
curtails the authority of the authorised officer to exercise the powers given
by the statute.
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29. Reliance has been placed on P. Chidambaram vs. Directorate of
Enforcement, (2019) 9 SCC 24 and Rohit Tandon vs. Directorate of
Enforcement, (2018) 11 SCC 46.
30. On merits, all the averments made in the Bail Application, are denied.
31. It is stated that Section 420/406 and 120-B of IPC under which the
FIR has been registered, are scheduled offences. Therefore, the
investigations undertaken by the ED is valid in law and cannot be scuttled
by a bald averment that no scheduled offence is made out.
32. It is further submitted that merely because the evidence is
documentary or there is little likelihood of tampering with the documents,
can be a ground to grant the Bail.
33. It is, therefore, submitted that no Anticipatory Bail be granted.
34. The Applicant in the Rejoinder has explained that the Respondent
has asserted that there is no apprehension of arrest in the instant case, while
at the same time stated that the acts of the Applicant are punishable under
the IPC, which is covered under paragraph 1 the of Schedule given under
PMLA, to submit that the plea taken by the Applicant that there is no
Scheduled offence is wrong and misleading.
35. It is further submitted that the Applicant is a renowned journalist. The
intention of the Investigating Agency is merely to harass the Applicant,
which is evident from the manner in which the investigations are being
conducted. The urgency which was shown during the pre-protection period
seems to have disappeared in the post protection period.
36. The Applicant was last summoned by the ED on 17.08.2021 and
thereafter, he has not been called even once for joining the investigations.
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37. Even though, the investigations are pending since 02.09.2020, no
prosecution Complaint has been filed by the ED in the Court.
38. Therefore, prayer is made that the interim protection granted to the
Applicant vide Order dated 29.07.2021, may be confirmed.
39. Written Submissions have been filed on behalf of the Respondent,
which is essentially in line with the averments made in the Reply. It also
details the manner of transaction.
Submissions heard and the record perused.
40. Personal Liberty is a precious Constitutional value and cannot be
tampered with casually. The objective behind depriving an individual of his
personal liberty must be founded on serious considerations. An accused, as a
presumed innocent person, is entitled to present his case and establish his
innocence.
41. The Apex Court State vs. Jaspal Singh Gill, AIR 1984 SC 1503 has
observed that while granting Bail, in non-bailable offences where the trial
has not yet commenced, the Court should take into consideration various
matters such as nature and seriousness of offence, character of evidence,
reasonable possibility of the presence of accused not being required at trial,
apprehension of tempering with witnesses, and other similar considerations.
42. 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.
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43. 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.
44. 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, subject to be following conditions:-
(i) The Applicant/Accused shall furnish a personal bond in
the sum of Rs.25,000/- with one surety in the like amount to the
satisfaction of the Investigating Officer/Arresting Officer.
(ii) The Applicant/Accused shall join the investigations, as
and when called by the Investigating Officer and shall co-
operate during the investigations.
(iii) The Applicant/Accused shall furnish his cell-phone
number to the Investigating Officer on which he may be
contacted at any time and shall ensure that the number is kept
active and switched-on at all times.
(iv) The Applicant/Accused shall not contact, nor visit, nor
offer any inducement, threat or promise to any of the
prosecution witnesses or other persons acquainted with the facts
of case.
(v) The Applicant/Accused shall not tamper with evidence
nor otherwise indulge in any act or omission that is unlawful orSignature Not Verified
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that would prejudice the proceedings in the pending trial.
45. The Petition stands disposed of in the above terms. The Pending
Application, if any, also stands disposed of.
46. Copy of the Order be sent to the learned Trial Court for compliance.
(NEENA BANSAL KRISHNA)
JUDGE
JULY 23, 2025/RS
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