Supreme Court Move Challenges High Court Ruling

NEW DELHI — The Enforcement Directorate (ED) has officially moved the Supreme Court to challenge the Delhi High Court’s May 29, 2026, ruling that quashed the police case and subsequent money-laundering proceedings against news portal NewsClick. The legal challenge centers on allegations of foreign fund violations.

In its special leave petition, the probe agency contended that the High Court erred by dismissing the Enforcement Case Information Report (ECIR) without conducting a proper examination of the merits under the Prevention of Money Laundering Act (PMLA).

Agency Cites Legal Misinterpretation and Pending Stays

According to the ED's filing, the High Court applied an incorrect legal test by evaluating the sufficiency of incriminating material at the preliminary investigation stage, rather than focusing purely on the nature of the allegations.

The agency further argued that its investigation was severely restricted due to judicial hurdles. It pointed out that a June 2021 order barring coercive action against the respondents remained active, while subsequent applications seeking a vacation of the stay languished for approximately three years.

Discrepancies in Foreign Investments Highlighted

Detailing its grounds for appeal, the ED claimed that the High Court overlooked substantial material evidence placed on record. The agency pointed to specific financial discrepancies regarding foreign investments received by PPK Newsclick Studio Private Limited.

This included a contested agreement with Worldwide Media Holdings LLC for a $1.5 million investment spread across three tranches. The ED questioned the legality and circumstances surrounding the funds, noting that only a single tranche arrived as foreign direct investment.

The agency's petition also referenced corporate financial records, email communications detailing the incorporation of Worldwide Media Holdings LLC, and statements recorded during the course of the probe. Furthermore, the ED challenged the High Court's conclusion that the gathered facts failed to disclose ingredients of cheating and criminal conspiracy under criminal law.

Stand on ECIR and Police Case Procedures

Defending its procedural approach, the agency relied on established Supreme Court precedents to assert that an initial police report or case registration need not contain exhaustive details of an alleged offense. The critical benchmark, according to the ED, is whether the initial information establishes reasonable suspicion to warrant a comprehensive investigation.

Additionally, the agency maintained that an ECIR functions as an internal administrative document rather than a formal police FIR, arguing that setting aside an ECIR does not automatically nullify an ongoing PMLA inquiry.