The Enforcement Directorate (ED) has imposed a penalty exceeding ₹3.44 crore on BBC World Service India for violations of Foreign Direct Investment (FDI) regulations under the Foreign Exchange Management Act (FEMA). Additionally, three of its directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—have each been fined over ₹1.14 crore each.
In addition to the principal penalty, BBC WS India faces a daily fine of ₹5,000 for each day after October 15, 2021, until compliance is achieved. The directors were fined for their roles in overseeing company operations during the period of contravention. BBC WS India violated the FEMA norms by not reducing its FDI to 26%.
An ED official told the media, “We have issued an adjudication order on Friday, levying a penalty of ₹3,44,48,850 on BBC WS India, along with a fine of ₹5000 for every day after 15.10.2021 till the date of compliance, for violation of provisions of FEMA (foreign exchange management act), 1999.”
The officer further added, “additionally, directors – Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons have each been fined ₹1,14,82,950 for their roles in overseeing company operations during the period of contravention”.
The adjudication proceedings commenced following a show-cause notice issued on August 4, 2023, to BBC WS India, its three directors, and the finance head for various contraventions under FEMA. The ED’s investigation revealed that BBC WS India, a company with 100% FDI, continued to engage in uploading and streaming news and current affairs through digital media without reducing its FDI to the mandated 26% cap. This cap was stipulated by the Department for Promotion of Industry and Internal Trade (DPIIT) in Press Note 4, issued on September 18, 2019, which requires digital media entities to limit FDI to 26% under the government approval route.
The ED initiated its FEMA probe against BBC India in April 2023, following findings from an Income Tax Department survey conducted in February 2023. The survey suggested discrepancies between the income reported by BBC’s various entities and the scale of their operations in India, indicating potential tax evasion on certain remittances.
As of now, BBC has not issued a public statement regarding the ED’s recent adjudication order.
