REGULATORY · INDIA
FEMA order fines NewsClick and founder ₹184 crore
The Hindu
17 Feb · 1:59 AM
Change
A FEMA adjudicating authority ordered a ₹184 crore penalty against PPK Newsclick Studio Pvt Ltd and held founder-director Prabir Purkayastha liable for alleged foreign-funds contraventions.
Why it matters
The Enforcement Directorate said the penalty was imposed via a FEMA adjudication order following proceedings initiated on an ED complaint under Section 16 alleging contraventions related to receipt and utilisation of foreign funds. The order also attributes responsibility to Prabir Purkayastha as the person in charge of business conduct at the relevant time, triggering personal liability under Section 42. The size of the penalty elevates the stakes for ongoing or parallel proceedings involving the entity and its leadership. For organisations with foreign inflows, the case tightens perceived enforcement constraints around documentation, end-use, and governance over foreign-fund utilisation.
Implications
- • ₹184 crore penalty crystallizes balance-sheet and cash-flow exposure
- • Personal liability applied to the director under FEMA Section 42
- • Higher enforcement sensitivity around foreign-fund receipt and end-use controls
- • Potential knock-on effects for banking/partner due diligence on the entity
Who is affected
- • PPK Newsclick Studio Pvt Ltd (NewsClick owner)
- • Prabir Purkayastha (director/editor-in-chief)
- • Digital media companies with foreign funding or overseas investors
- • Entities subject to FEMA scrutiny for foreign-fund utilisation
Source
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