ED levies ₹3.44-cr penalty on BBC India for Fema violation

ED launched a FEMA probe against BBC India in April 2023, based on the findings of the Income Tax department that carried out a three-day survey at the company’s offices in Delhi and other cities

The Enforcement Directorate has fined the British Broadcasting Corporation (BBC) India and its directors for violating India’s foreign direct investment (FDI) regulations as it did not reduce foreign funding to 26% despite a cap on digital media organisations, officials familiar with the matter said on Friday.

The probe agency also fined three of its directors with more than ₹1.14 crore each for overseeing the company’s operations during the period of contravention, the officials said. (PTI)

The probe agency also fined three of its directors with more than ₹1.14 crore each for overseeing the company’s operations during the period of contravention, the officials said.

“We have issued an adjudication order on Friday, levying a penalty of ₹3,44,48,850 on BBC WS India, along with a fine of ₹5000 for every day after October 15, 2021, till the date of compliance, for violation of provisions of FEMA (foreign exchange management act), 1999,” said an official, who asked not to be named.

“Additionally, directors — Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons — have each been fined ₹1,14,82,950 for their roles in overseeing company operations during the period of contravention,” the official cited above said.

ED launched a FEMA probe against BBC India in April 2023, based on the findings of the Income Tax department that carried out a three-day survey at the company’s offices in Delhi and other cities in February same year.

A second officer said that the adjudication proceedings were initiated “after a show cause notice was issued on August 4, 2023, to BBC WS India, its three directors, and the finance head”.

“On September 18, 2019, DPIIT (department for promotion of industry and internal trade) issued a press note 4, stipulating a 26% FDI cap for digital media under the government approval route. However, BBC WS India, which is a 100% FDI company, engaged in uploading/streaming news and current affairs through digital media did not reduce their FDI to 26% and kept it at 100% in gross violation of regulations issued by government of India,” the second officer said.

Responding to the proceedings, a BBC spokesperson said, “The BBC is committed to operating within the rules of all countries we are based in, including India. At this stage, neither BBC World Service India nor its directors have received any Adjudication Order from the Enforcement Directorate.”

The spokesperson added, “We will carefully review any order when it is received and consider next steps as appropriate.”