New Delhi: The Enforcement Directorate (ED) has imposed a fine of Rs. 3.44 crore on BBC India, citing violations of the Foreign Exchange Management Act (FEMA). The action follows the release of a controversial documentary on the 2002 Gujarat riots and the alleged role of then-Gujarat Chief Minister Narendra Modi.
As reported by The Indian Express, the ED has penalized BBC World Service India with a corporate fine and also levied Rs. 1.14 crore each on three of its directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—for their role in overseeing operations during the period of non-compliance. The investigation was initiated following Income Tax Department surveys at BBC’s New Delhi and Mumbai offices in February 2023, which pointed to alleged transfer pricing irregularities and profit diversion.
The ED’s findings suggest that BBC World Service India, which operates with 100% foreign direct investment (FDI), failed to comply with government regulations introduced in September 2019. These rules set a 26% cap on FDI in digital media, requiring government approval for any foreign investment.
A BBC spokesperson, however, stated that they have not received any adjudication order from the ED at this stage and reiterated their commitment to adhering to regulations in all countries, including India.
The investigation has also resulted in a daily fine of Rs. 5,000 from October 15, 2021, until compliance is achieved. The penalties follow a show-cause notice issued in August 2023, outlining BBC India’s alleged contraventions.
The controversy surrounding the documentary, released in January 2023, led to government directives for social media platforms to remove links, citing threats to India’s sovereignty and integrity. Subsequent tax surveys reportedly revealed discrepancies in BBC’s financial reporting, suggesting a mismatch between income declarations and its scale of operations in India.
