India’s Enforcement Directorate Fines BBC
India’s financial crime agency has fined the British Broadcasting Corporation (BBC) £314,510 ($397,980) for alleged foreign exchange violations. According to three government officials, the ED probe was initiated under the Foreign Exchange Management Act (FEMA). This BBC India probe began in April 2023, just two months after tax men raided its offices in Delhi and Mumbai. The ED, responsible for investigating violations under FEMA, has the authority to impose penalties and adjudicate cases.
Foreign Ownership Rule Breach Leads to Penalty
According to sources, the BBC received a show-cause notice in 2023 for failing to reduce foreign ownership of its Indian-language services to the permitted 26% limit. This led to the fine, which also includes daily penalties dating back to October 15, 2021.
Additionally, three company directors received individual fines of £104,836 each for overseeing operations during the violation period.
BBC Awaits Official Order, Plans Response
The BBC stated that it had not yet received an official adjudication order. In a statement, the broadcaster confirmed it would carefully review the order upon receipt and consider its next course of action.
Tax Raids and Political Context
Authorities raided BBC’s offices in February 2023, shortly after the broadcaster released a documentary about Prime Minister Narendra Modi’s role during the 2002 Gujarat riots. The documentary questioned his leadership during the unrest, which resulted in over 1,000 deaths, mostly among Muslims.
The Indian government dismissed the documentary as propaganda and banned its distribution on television and social media. Modi has always denied the responsibility for the riots and was cleared from blame in 2012 by an inquiry managed by the Supreme Court of India.
