India's FEMA adjudicating authority imposes ₹184 crore penalty on NewsClick and its founder
Change
India's FEMA adjudicating authority imposed a ₹184 crore penalty for foreign-funding contraventions, allocating ₹120 crore to PPK Newsclick Studio Pvt. Ltd. and ₹64 crore to founder Prabir Purkayastha.
Why it matters
The order treats misclassified inward remittances and failure to file mandatory export reports as breaches of foreign-exchange rules, restricting the legal basis for similar receipts going forward. It also affirms that company directors can be held personally liable under Section 42 of FEMA, increasing enforcement risk for media operators accepting cross-border funds.
Implications
- • Digital news publishers that receive foreign inward remittances must accurately classify export receipts and submit required SOFTEX forms to regularise or validate past transactions.
- • Founders and directors of private digital news platforms must review and correct statutory filings about business activity and FDI routes to avoid personal liability under FEMA Section 42.
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Topics
Governance Policy & Regulation Corruption & Accountability Regulatory Actions Compliance