ED slaps Rs 3.44 cr fine on BBC India for flouting FDI norms
The Enforcement Directorate (ED) has imposed a penalty of Rs 3.44 crore on BBC World Service India for alleged contravention of foreign direct investment (FDI) regulations, agency officials said on Friday.
Penalty of Rs 1.14 cr each on 3 directors
- A 100% FDI company, BBC India failed to cut FDI to 26% in violation of regulations
- The ED also fined company’s three directors Rs 1.14 cr each for their role in overseeing ops
- Additionally, a daily penalty of Rs 5,000, applicable from Oct 15, 2021, also levied
Additionally, the agency has fined the company’s directors — Giles Anthony Hunt, Indu Shekhar Sinha and Paul Michael — Rs 1.14 crore each for their role in overseeing the operations. The order was issued against the British broadcaster following adjudication under the Foreign Exchange Management Act (FEMA).
The ED has also levied a daily penalty of Rs 5,000 on BBC India, applicable from October 15, 2021, until compliance is achieved, for failing to adhere to the government’s 26 per cent FDI cap for digital media under the government approval route. Despite the regulations, BBC India, a 100 per cent FDI company engaged in uploading and streaming news and current affairs through digital media, continued to maintain its FDI at 100 per cent in violation of the rules, sources said. The adjudication proceedings were initiated after a show-cause notice was issued on August 4, 2023, to BBC India, its three directors and the finance head for breaching FDI norms. The regulations, as per a release dated September 18, 2019, of the Department for Promotion of Industry and Internal Trade (DPIIT), mandate 26 per cent FDI cap for digital media under the government approval route, the sources said.
The development follows income tax raids on BBC offices in Delhi and Mumbai in 2023, which occurred after the broadcaster released a documentary critical of PM Narendra Modi. The documentary was later blocked by the government.
