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6. The Newsclick was controlled by a trust, namely, the Newsclick India Trust and later from the year 2015, a Limited Liability Partnership i.e. M/s PP Newsclick Studio LLP. With intent to receive investment to allow the LLP to grow and expand, an Agreement dated 01.05.2017 was entered between M/s PP Newsclick Studio LLP and M/s BGJC Associates LLP. Further, to enable a smooth inflow of future investment, a decision was taken by M/s PP Newsclick Studio LLP, to convert the LLP into a private Limited Company, which was done on 03.06.2017. The Company was approached for FDI and ultimately, an entity by the name of M/s Worldwide Media Holdings LLC (hereinafter referred to as „WWMH') invested the shares of the said Company as FDI.

7. WWMH was incorporated on 29.11.2017 as a Limited Liability Corporation in USA. During this time, when the possibility of investment by WWMH in the Company was being discussed, the Applicant wanted to confirm the regulatory regime around the receipt of FDI by a Company engaged in the digital media business, to ensure any regulatory regime is fully complied with. The Applicant addressed a Letter dated 20.12.2017, to the Ministry of Information and Broadcasting requesting for a clarification to the FDI policy. The Ministry of Information and Broadcasting gave a Reply dated 05.01.2018 clarified that "online publications on website/web portal do not fall under the ambit of print media."

11. In terms of the Agreement dated 20.03.2018, the first tranche of investment of USD 1.5 Million, was remitted by WWMH on 11.04.2018, in exchange for 7.69% shares of the Company. However, the remaining investment was never remitted or exercised by WWMH. Consequently, WWMH holds 7.69% shares of the Company.

12. Subsequently, the present FIR No.116/2020 dated 26.08.2020 under Section 406/4208120-B IPC, was registered on the Complaint of Sh. Sobhan Singh at Police Station Economic Offences Wing, Delhi Police wherein the allegations were made that the investment was made by greatly undervaluing the shares of the Company, to avoid the alleged gap of 26% of FDI in a digital news website. It was further alleged that over 45% of this investment was diverted/siphoned off for the payment of salary/consultancy, rent and other expenses, which payments are alleged to have been made for ulterior motives. Therefore, it is alleged that the Company has violated the FDI and other laws of the country and has caused a loss to the Government Exchequer.

20. In the end, it is submitted that the Applicant is a senior citizen aged about 71 years and suffers from various co-morbidities and any custody of the Applicant could be deleterious upon his health, especially in the light of the COVID-19 pandemic. It is, therefore, submitted that he be granted Anticipatory Bail.

21. The Respondent in its Status Report, has alleged that M/s PPK Newsclick Studio Pvt. Ltd. received a FDI of Rs.9.59 Crores from WWMH during the Financial Year 2018-2019, which was used for allotment of 8333 equity shares of Rs.10 each at a premium of Rs.11,510/- per share as against the allotment of share of Rs.10/- at face value only to the promoters. Apparently, much higher than valued by RBI. The reason for charging huge premium on allotment of share seems to deliberately avoid the restrictions/cap of FDI in the digital news website at 26% of the capital, as well as, to avoid Government approval for such FDI. The investor Company WWMH was incorporated in USA giving the address of the Chartered Accountant and the Company was reported as cancelled due to non-payment of tax as on 01.06.2017. It shows that this Company had received FDI of Rs.9.59 Crores from WWMH, after a gap of more than one year from the date when this Company was cancelled. The reason for incurring such huge losses was excessive payment of consultancy, salary and rent. For example, salary/consultancy fee of Rs.3.82 Crores and Rs.1.12 respectively was paid during the Financial Year 2018-2019 even when the total revenue of the Company was Rs.1.10 Crore. More than 45% of FDI was actually diverted / siphoned-off for the payment of Salary/Consultation fees, rent and other such expenses of Promoters/Journalists/Employees associated with the Company. Prima facie these facts suggested that the FDI was actually intended to make the payments for ulterior motives clandestinely. The above news portal has violated the FDI law and other laws of the country and caused loss to the exchequer. Hence, the FIR was registered and the investigations initiated.