In a case filed after the release of a documentary on the 2002 riots and the alleged role of then Gujarat Chief Minister Narendra Modi, the British Broadcasting Corporation (BBC) India has reportedly been fined heavily for alleged foreign exchange violations under the Foreign Exchange Management Act (FEMA) by the Enforcement Directorate.
The ED has imposed a corporate fine of Rs 3.44 crore on BBC and levied penalties of Rs 1.14 crore each on three directors of BBC India, citing their roles in overseeing operations during the period of contravention, two years after filing a case against the broadcaster, The Indian Express reported.
The case stems from Income-Tax Department surveys conducted at BBC’s offices in New Delhi and Mumbai in February 2023, which were initiated over allegations of non-compliance with transfer pricing regulations and suspected diversion of profits.
The Enforcement Directorate's investigation reportedly revealed that BBC World Service India, which operates with 100 per cent foreign direct investment (FDI), had failed to adhere to government regulations issued in September 2019 that mandated a 26 per cent FDI cap for digital media entities under the approval route.
Meanwhile, The Indian Express quoted a BBC spokesperson as denying having received any adjudication order from the Enforcement Directorate at this stage while reaffirming the organisation’s commitment to operating within the regulations of all countries where it had a presence, including India.
Regarding the penalties imposed by the Enforcement Directorate, an official explained that, in addition to a penalty of Rs 3,44,48,850 on BBC World Service India, a fine of Rs 5,000 per day had been imposed from 15 October 2021 until compliance was achieved.
The official further stated that three directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—had each been fined Rs 1,14,82,950 for their roles in overseeing company operations during the period of contravention.
The adjudication proceedings were launched after a show cause notice was issued in August 2023 to BBC World Service India, its three directors, and the finance head, detailing the alleged contraventions. Besides, the primary penalty, the company has been fined Rs 5,000 per day from 15 October 2021 until compliance is achieved.
The case gained prominence after the British broadcaster released a documentary on the 2002 Gujarat riots in January 2023, which led to a directive from the Indian government instructing social media platforms to remove links to the film.
Officials at the time stated that the documentary posed a threat to India's sovereignty and integrity. Following the documentary’s release, tax authorities conducted surveys at BBC premises, later asserting that they had uncovered discrepancies in the company’s transfer pricing documentation and found that the income reported by BBC group entities was not proportionate to the scale of its operations in India.