Newsclick investigation details accessed; top Left leader named in email exchanges 

Media portal News has come under the scanner of the Enforcement Directorate (ED) for alleged fraudulent infusion of the foreign fund to the tune of Rs 38.05 crore during a short span of three years. Republic SIT has accessed exclusive details of the investigation carried out by the agency.

Top sources say scrutiny of the evidence has revealed questionable infusion of foreign inward remittance of Rs 9.59 crore by way of Foreign Direct Investment and Rs 28.46 crore by way of export of services. The funds received were distributed among several controversial journalists and activists.

According to sources in ED, businessman Nivelle Roy Singham, a close associate of News Editor-in-Chief Prabir Purkayastha and frontman of Communist Party of China, is the real owner of the fund of Rs 38.05 crore which was infused in PPK News Studio Pvt Ltd between April 2018 and March 2021.

Unexplained FDI of Rs 9.59 crore

ED sources say that PPK News Studio Pvt Ltd received FDI of Rs 9.59 crore in April 2018 from a non-existent company (registration cancelled) namely M/s Worldwide Media Holdings LLC, USA. When asked during the interrogation, Prabir Purkayastha admitted that he did not know anything about Worldwide Media Holdings. Further investigations reveal that Worldwide Media Holding LLC was incorporated by one Jason Pfetcher, who was known to Prabir, with 100% equity of People Support Foundation in November 2017 and the company after transferring fund of Rs 9.59 crore to News stopped any further business activity as it was evident from the statutory non-filing by the company. Effectively, the ED believes that the funds received by News were through a legal façade of FDI investment.

Unexplained export remittance of Rs 28.46 crore 

News claimed that they received export remittance of Rs 27.51 crore from Justice & Education Fund Inc USA, Rs 49.31 lakhs from The Tricontinental Ltd USA, Rs 26.98 lakh from GSPAN LLC USA and Rs 2.03 lakh from Centro Popular Demidas Brazil from March 2018 to date. ED sources also say that there is no evidence of exporting services to the entities that gave the funds. News, however, claimed that the payments were received in lieu of uploading news content on People’s Dispatch Portal owned and maintained by News.

9th Grade Eduacted Electrician is a beneficiary 

According to ED, Prabir Purkayastha siphoned off funds to the tune of Rs. 1.55 crore from the company in the name of his electrician and friend Joseph Raj. The payment to Raj was on the grounds of petty maintenance work. But ED says they haven’t found any documentation for corresponding work.

More China connection 

Digital evidence has proved that Prabir and his associate journalist are working on various projects of CPC China which includes enhancing the image of China and to support several Chinese actions. The investigation reveals that Neville Singham asked Prabir to dub and subtitle a Chinese movie produced by the Propaganda Department of CPC Sichuan and the Shaanxi party provincial committee. Also evident from emails accessed by ED that as part of image building programme of China, several events / studies were carried out for China by Prabir and his associates.

Emails between Prabir, Vijay Prasad, senior CPM leader and Neville revolves around updates from China coverage of CPI(M) in China, the news is Anti-China feeling in India, restriction of investment and import from China, recent victory if CPM in local body elections in Kerala, praise for Chinese government action against ANT & Alibaba, a tribute by CPM to Mao Zedong.

A top Left leader is also named in the email exchanges between Prabir and Nivelle.

Defence supplier link

Prabir and Gautam Navlakha incorporated a company along with an existing defence supplier. According to the documents seized by ED, Gautam Navlakha and Prabir Purkayastha incorporated a company M/s Sagarika Process Analyst Pvt Ltd with the help of investment received from M/s Viking Systems International Inc USA, a company engaged in the business of military and naval supplies. The reason and source of the investment in the incorporation of the company are not disclosed during the interrogation.

News, meanwhile, has issued a statement calling it a smear campaign. “News has received funds, which have been duly disclosed to authorities in India, both from reputed entities and foundations in the US and as per rules and regulations in India and the United States governing such transactions. The selective leaks from ED regarding their investigation, which is already under challenge before the Court, reflect the inherent weakness in their own investigations and the course that it will take in the courts. Since the matter is already in the courts, News does not believe that it should participate in a media trial. It is unfortunate that the BJP, the ruling party, also sees fit to air such unfounded allegations. We reserve the right to initiate appropriate legal action on these matters. News will continue to carry out its journalistic duties as it has been doing and will not be forced into submission by these attacks,” read the statement.