ED Imposes Over Rs 3.44 Crore Penalty On BBC World Service India: Here Is Why

The Enforcement Directorate (ED) has imposed a penalty exceeding Rs 3.44 crore on BBC World Service India for allegedly violating foreign direct investment (FDI) regulations, officials said on Friday.

In addition, three directors of the British broadcaster have each been fined more than Rs 1.14 crore following an adjudication order issued under the Foreign Exchange Management Act (FEMA).

Adjudication Order and Penalties

The Enforcement Directorate initiated adjudication proceedings after issuing a show-cause notice on August 4, 2023, to BBC World Service India, its three directors, and the finance head for multiple contraventions under FEMA.

According to reports, BBC World Service in India, a 100 per cent FDI entity, was engaged in uploading and streaming news and current affairs through digital media. However, it failed to comply with the FDI cap regulation set by the Indian government, which requires digital media companies to limit foreign direct investment to 26 per cent. Instead, the broadcaster continued to operate at 100 per cent FDI, which authorities deemed a “gross violation” of the law.

The regulatory framework governing FDI in digital media was outlined in Press Note 4, issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on September 18, 2019. It mandates a maximum 26 per cent FDI under the government approval route.

Breakdown of Penalties Imposed on BBC World Service India

Officials stated that the total penalty imposed on the broadcaster amounts to Rs 3,44,48,850. Additionally, the company has been fined Rs 5,000 for each day of non-compliance beyond October 15, 2021, until the violation is rectified.

The three BBC directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—were each fined Rs 1,14,82,950 for their roles in overseeing company operations during the period of non-compliance, sources added.

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