New Delhi: The Enforcement Directorate (ED) has imposed a fine of over Rs 3.44 crore on BBC World Service India for alleged violation of Foreign Direct Investment (FDI) rules. Agency officials gave this information on Friday.
The federal investigation agency also imposed a fine of over Rs 1.14 crore on three of its directors while issuing an order against the British broadcaster after the decision under the Foreign Exchange Management Act (FEMA). A BBC spokesperson said in a statement to PTI that ‘so far neither BBC World Service India nor its directors have received any adjudication order from the Enforcement Directorate.’
The spokesperson said, ‘The BBC is committed to working under the rules of all the countries where we are located, including India. Whenever an order is received, we will review it carefully and consider the next steps appropriately.’
The adjudication proceedings were initiated after a show cause notice was issued on August 4, 2023 to BBC WS India, its three directors and finance head for various violations under the said law. The ED initiated a FEMA investigation against the BBC a few months after the Income Tax Department conducted a survey campaign at the news organisation’s Delhi office in February 2023.
Sources said BBC World Service India is a 100 percent FDI company. It is used to upload/stream news and current affairs through digital media. The company did not reduce its FDI to 26 percent, but kept it at 100 percent. This is a gross violation of the rules issued by the Government of India.
He said that the Department for Promotion of Industry and Internal Trade (DPIIT) set a 26 percent FDI limit for digital media on September 18, 2019. According to PTI, the total fine imposed on BBC World Service India is Rs 3,44,48,850. Also, a fine of Rs 5,000 has been imposed every day from 15.10.2021 till the date of compliance.
He said that three directors of BBC – Giles Antony Hunt, Indu Shekhar Sinha and Paul Michael Gibbons – were fined Rs 1,14,82,950 for their role in monitoring the company’s operations during the period of violation.