The news portal NewsClick got interim protection for a week from the Supreme Court of India on Friday in an apparent effort to escape an outstanding tax demand of over ₹19 crore on it. The company was allowed by the High Court to question the tax demand in the Delhi High Court, offering such a company reprieve from any revenue department coercive action.
A bench comprising Chief Justice of India Sanjiv Khanna, Justice Sanjay Kumar and Justice KV Viswanathan dismissed the writ petition filed by PPK Newsclick Studio Pvt Ltd under Article 32, saying that the matter has to be first heard by the Delhi High Court. “We grant liberty to the petitioner to attend the Delhi High Court for a week, no coercive action shall be taken”, said the bench and added, “We grant liberty to petitioner to approach Delhi High Court.”
Senior advocates Kapil Sibal, Devadatt Kamat and advocate Rohit Sharma were representing NewsClick, and opposed the tax demand on the basis that the money did not sum up to the receipts of the company for that assessment year. The order of the legal team assailed the assessment order dated January 31, 2025 that directed the company to pay ₹19.14 crore, payable before March 2, 2025.
Thus, NewsClick has been in the practice of scrutiny for some time now. Prabir Purkayastha, the portal’s founder, was arrested under the Unlawful Activities (Preventions) Act (UAPA) in October 2023. He was charged by the U.S. government for ‘pro-China propaganda’ for receiving foreign funds.
Newsclick, however, has had a reprieve for a brief time with the Supreme Court’s order; the final resolution of the tax dispute will now rest in the proceedings in the Delhi High Court. The issue is expected to be a rallying cry for the portal, which is torn under an ongoing legal conflict and allegations.
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