New Delhi: The Enforcement Directorate (ED) has imposed hefty penalties on BBC World Service (India) for allegedly violating the Foreign Exchange Management Act (FEMA), 1999.
In an order dated February 21, the central agency fined BBC India Rs 3.44 crore and also directed the company to pay Rs 5,000 per day for non-compliance from October 15, 2021, until the violations are rectified.
Also, three of its directors have also been fined big sums.
“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,” an ED source was quoted as saying.
The directors in question — Giles Antony Hunt, Indu Shekhar Sinha and Paul Michael Gibbons — have been fined Rs 1,14,82,950 each “for their roles in overseeing company operations during the period of contravention.”
It was in April 2023 that the ED launched a FEMA probe against BBC India, based on findings of the Income Tax department after a three-day survey at the news organisation’s offices in Delhi and other cities in February 2023.
According to the agency, BBC India and its directors flouted Indian laws by not reducing its foreign funding despite the cap of 26% on digital media organisations.
BBC’s reaction is awaited.
