After two years of filing a case against BBC (British Broadcasting Corporation), India, for alleged foreign exchange violations under the Foreign Exchange Management Act (FEMA), the Enforcement Directorate on Friday issued a declaration order, imposing a fine of Rs 3.44 crore on the broadcaster. Additionally, the agency fined three BBC directors ₹1.14 crore each.

The ED filed the case after the Income Tax Department conducted surveys at the BBC offices in New Delhi and Mumbai in February 2023, alleging “non-compliance” with transfer pricing regulations and profit divergence.

According to the remarks of a BBC spokesperson, “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.” “We will carefully review any order when it is received and consider next steps as appropriate,” the spokesperson added.

Regarding the fine imposed by the ED, an official expressed, “Apart from levying a penalty of Rs 3,44,48,850 on BBC WS India, a fine of Rs 5,000 for each day has been imposed from October 15, 2021, till the date of compliance. Also, three directors — Giles Antony Hunt, Indu Shekhar Sinha and Paul Michael Gibbons — have each been fined Rs 1,14,82,950 for their roles in overseeing company operations during the period of contravention.”

“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 for the contraventions,” mentioned the official.

As per the alleged violations, the official spoke, “On September 18, 2019, DPIIT issued a press note, stipulating a 26 per cent FDI cap for digital media under the government approval route. However, BBC WS India, which is a 100 per cent FDI company engaged in uploading/streaming news and current affairs through digital media, did not reduce their FDI to 26 per cent and kept it at 100 per cent in gross violation of regulations issued by the government.”

The tax department took action after the British broadcaster released a documentary on January 17, 2023, titled "India: The Modi Question," which focused on the 2002 Gujarat riots. On January 20, the Centre directed YouTube and Twitter to remove links sharing the documentary, stating that it was found to be "undermining the sovereignty and integrity of India."