BBC India Fined With 3.44 Crore By ED Over FEMA Violation

After almost two years, world’s leading media house BBC (British Broadcasting Company) has been fined with Rs. 3.4 crore by the ED (Enforcement Directorate). The fines are imposed over alleged foreign exchange violation. The ED has also imposed a fine of Rs 1.14 crore each on three of its directors for their role in overseeing operations during this period.

In April 2023, the ED had opened an investigation into the BBC India under the Foreign Exchange Management Act (FEMA). This followed two months after Income Tax authorities registered a case and also conducted searched the broadcaster’s Mumbai and Delhi offices with allegations of “non-compliance” with transfer pricing rules and diversion of profits.

“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,” a BBC spokesperson was quoted in media as saying.
“We will carefully review any order when it is received and consider next steps as appropriate,” it added.

The BJP government at center has imposed a cap of 26% foreign direct investment (FDI) for digital news outfits operating in India. On the contrary, 99.99% of BBC World Service India’s shares were owned by its UK-based public broadcaster.

Under the new FDI rules, companies exceeding the 26% FDI limit were mandated to reduce their foreign investment by  October 2021 to comply with the new rules. Reports say that according to the government BBC failed to do this and kept it at 100%.

The ED had also slapped BBC India with a daily penalty of Rs 5,000 applicable from October 15, 2021 until the company achieves the compliance. 

BBC Documentary On Gujarat Riot And The Action

The raids on BBC India aligned in a time soon after it aired a documentary on January 17, 2023, titled ‘India: The Modi Question’, on Narendra Modi’s alleged role in the 2002 Gujarat riots.

On January 20, the Union government ordered YouTube and Twitter to take down the documentary saying it  “undermined the sovereignty and integrity of India”.

In April 2024, the broadcaster decided to hand over its newsroom publishing license in India to a private limited company named  ‘Collective Newsroom’, which has been set up by four former employees.

Present status suggests that the  Collective Newsroom has absorbed much of BBC India’s staff and has been producing India content for BBC’s digital services in English, Hindi, Gujarati, Marathi, Punjabi, Tamil, and Telugu.