UPSC Prelims Practice Questions — Why was the NewsClick case quashed?

Q1. The Delhi High Court judgment of 29 May 2026 quashing the FIR and ED proceedings against NewsClick was delivered by which judge?

  • A. Justice Neena Bansal Krishna
  • B. Justice Swarana Kanta Sharma
  • C. Justice Subramonium Prasad
  • D. Justice Anish Dayal

Q2. With reference to the grounds on which the Delhi High Court quashed the NewsClick FIR and ED case, consider the following statements: 1. The RBI confirmed the foreign investment had come through the automatic route with no violation of FEMA regulations. 2. At the time the investment was made in 2018, there was no cap on FDI in digital news media. 3. The US investor company had filed a complaint alleging that it had been cheated. 4. The Court held that the pricing of shares was an economic decision and did not spell out any criminal offence. Which of the statements given above is/are correct?

  1. The RBI confirmed the foreign investment had come through the automatic route with no violation of FEMA regulations.
  2. At the time the investment was made in 2018, there was no cap on FDI in digital news media.
  3. The US investor company had filed a complaint alleging that it had been cheated.
  4. The Court held that the pricing of shares was an economic decision and did not spell out any criminal offence.
  • A. 1, 2 and 4
  • B. 2 and 3 only
  • C. 1 and 3
  • D. 1, 2, 3 and 4

Q3. In the NewsClick proceedings, which agency had registered the original predicate FIR that formed the very basis for the Enforcement Directorate's subsequent PMLA action?

  • A. Economic Offences Wing (EOW), Delhi Police
  • B. Enforcement Directorate (ED)
  • C. Special Cell, Delhi Police
  • D. Central Bureau of Investigation (CBI)

Q4. In the context of the Prevention of Money Laundering Act, 2002, what is meant by a 'predicate offence'?

  • A. A scheduled criminal offence whose proceeds of crime form the foundation on which a money-laundering case can be initiated
  • B. The first bail application filed by an accused before a money-laundering trial begins
  • C. An offence that can be tried only after the main money-laundering charge is proved
  • D. A preliminary inquiry conducted by the ED before any FIR is registered

Q5. NewsClick was alleged to have over-valued its shares in order to circumvent the FDI cap then prescribed for digital news media entities. What was the percentage of that FDI cap?

  • A. 26%
  • B. 49%
  • C. 74%
  • D. 100%