BBC Directors Face Penalties and Electronic Device Seizures in FDI and Tax Violation Investigations
ED Imposes ₹3.44 Crore Fine on BBC India for FDI Breach, Action Taken Against 3 Directors
The Enforcement Directorate (ED) has levied a fine of ₹3.44 crore on BBC World Service India for violating Foreign Direct Investment (FDI) regulations. Additionally, fines totaling over ₹1.14 crore were imposed on three of the company’s directors. This action follows the provisions of the Foreign Exchange Management Act (FEMA).
As reported by Economic Times, BBC World Service India operates as a 100% FDI company, despite being a digital news media organization. However, a government order issued in 2019 limited FDI in digital media to 26%, a regulation that BBC chose to ignore.
On August 4, 2023, the ED issued a show-cause notice to BBC World Service India, its three directors, and the finance head. The total penalty on the company is ₹3,44,48,850, with a daily fine of ₹5,000 applicable until the company complies with FEMA regulations, starting from October 15, 2021.
Income Tax Raid on BBC’s Delhi and Mumbai Offices
In February 2023, the Income Tax Department conducted raids on BBC’s offices in Delhi and Mumbai, investigating allegations of discrepancies in international tax matters. BBC confirmed the raids on social media. The Congress party labeled the action as an undeclared emergency, while the BJP reminded that in 1970, Indira Gandhi imposed a ban on the BBC due to a controversial document.
Seizure of Electronics During the Raids
During the raids, the Income Tax Department seized mobile phones, laptops, and desktops belonging to employees in the finance department. Staff members had their phones confiscated and were instructed to remain in meeting rooms.
Overview of BBC World Service
The British Broadcasting Corporation (BBC) World Service is a state-funded entity that broadcasts news in 40 languages. It operates under the British Foreign and Commonwealth Office, with its funding coming from parliamentary grants. Established in 1927 under a royal charter, BBC World Service has been a major player in global news broadcasting.
