BBC shifts India publishing licence to Collective Newsroom amid tax probe
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Following scrutiny from Indian income tax authorities last year, the BBC has relinquished its newsroom publishing licence in India to a newly formed private limited company named Collective Newsroom, signifying a significant restructuring of its operations in the country.
Spearheaded by four former BBC employees, including Rupa Jha, the Collective Newsroom will assume responsibility for producing all of the BBC's digital content in India across multiple languages, including English, Hindi, Gujarati, Marathi, Punjabi, Tamil, and Telugu.
The decision to transfer the publishing licence to Collective Newsroom comes amid regulatory challenges posed by the Indian government's imposition of a 26% cap on foreign direct investment (FDI) for digital news outlets operating in the country.
With 99.99% of BBC World Service India's shares owned by its UK-based public broadcaster, complying with the FDI regulations became imperative. Facing the prospect of reducing foreign investment or risking financial viability, the BBC opted for an unconventional solution, paving the way for the establishment of Collective Newsroom.
Rupa Jha, CEO of Collective Newsroom and a former senior news editor at BBC India, emphasized that the move underscores the BBC's commitment to maintaining its presence in India without compromising journalistic integrity. Despite the transfer of the publishing licence, the BBC remains firmly supportive of Collective Newsroom's endeavours.
The restructuring comes in the wake of a raid by Indian income tax authorities on the BBC offices in February 2023, shortly after the broadcaster aired a documentary allegedly implicating Indian Prime Minister Narendra Modi in the 2002 Gujarat riots. While the documentary was not broadcast on Indian television, concerted efforts were made by the Union government to prevent its dissemination on social media platforms.
Collective Newsroom, led by Indian citizens Rupa Jha, Mukesh Sharma, Sanjoy Majumder, and Sara Hassan, is expected to absorb BBC India's entire staff. Moreover, employees of Collective Newsroom can anticipate salary and employment terms in line with those of the BBC, ensuring continuity and stability in their professional lives.
Jonathan Munro, deputy CEO of BBC News, hailed the formation of Collective Newsroom as a progressive step that upholds the BBC's longstanding commitment to prioritizing audience interests. The restructuring reflects the BBC's enduring legacy in India, characterized by a dedication to delivering quality journalism that resonates with diverse audiences.
The decision to restructure the BBC's operations in India comes at a time when the country's press freedom ranking remains a concern. India currently ranks 161 out of 180 countries in the World Press Freedom Index, underscoring the challenges faced by media organizations in navigating a complex regulatory landscape while upholding journalistic principles.