NewsClick’s bank accounts frozen, news portal says no notice given

According to a statement issued by NewsClick, the organisation has been unable to make any bank payments as of the evening of December 18, due to action by the Income Tax department.
NewsClick founder and editor Prabir Purkayastha
NewsClick founder and editor Prabir Purkayastha
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The bank accounts of NewsClick have been frozen as a result of the action taken by the Income Tax (I-T) department, the media organisation said in a statement on Tuesday, December 19. “As of the evening of December 18, NewsClick has been unable to make any bank payments,” it said. NewsClick also said that the organisation was given no prior intimation regarding the freezing of the accounts. 

The statement said that the action “appears to be a continuation of the administrative-legal siege of the news portal which began with the Enforcement Directorate (ED) raids in February 2021, followed by an I-T department survey in September 2021, and the October 3, 2023 crackdown by the Delhi Police Special Cell.”

Following the October 3 raids carried out by the Delhi police at the houses and offices of NewsClick employees and those associated with the organisation, NewsClick founder Prabir Purkayastha and administrative officer Amit Chakraborty were arrested. The two have since remained in jail . 

Regarding the lack of prior notice on the freezing of its bank accounts, NewsClick said, “The staff discovered it by chance while trying to make routine payments [on Monday evening]. As a result of this high-handed action, salaries of all employees — journalists, videographers, and administrative and support staff — and consultants and contributors cannot be paid, including for the 19 days of December they have already worked.”

It said that the I-T department’s action will gravely affect its employees and all those dependent on NewsClick salaries. “Coming at the year-end festive season, this sudden action has left all our employees shocked. Since there is no indication of when our accounts will become accessible, there is uncertainty in the minds of all employees and their families, especially those who are completely dependent on salaries from NewsClick,” the statement said. 

Stating that the organisation has always complied with the laws of the land including all tax regulations, NewsClick alleged, “The claims levelled by the I-T Department are without any basis.” The news portal’s legal counsel are reviewing the developments and legal appeals against this measure will be initiated at the earliest.

“NewsClick and its courageous journalists remain committed to continuing their work for as long as possible. As always, we appeal for continued solidarity, which has been a source of support and encouragement to us,” the statement concluded.

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