ED imposesd Penalty of Rs.3.44 Crore on BBC India for Violation of FEMA Norms:

ED imposesd Penalty of Rs.3.44 Crore on BBC India for Violation of FEMA Norms The Enforcement Directorate (ED) launched an investigation on BBC World Service India under the Foreign Exchange Management Act in 2023. According to the report, this investigation led to the ED imposing a massive penalty of more than Rs. 3.44 crore on BBC World Service India for alleged violations of foreign direct investment (FDI) norms. Three directors of the broadcaster were fined more than Rs.1.14 crore each. The penalties were imposed during FEMA adjudication hearings. Responding to these developments, a BBC spokeswoman told the media, "As of now, neither BBC World Service India nor its directors have received any adjudication order from the Enforcement Directorate. The BBC is dedicated to following regulations in all countries where we operate, including India. We will carefully analyse any orders received and determine the best course of action." BBC WS India, its three directors, and the finance head received a show-cause notice on August 4, 2023, for several FEMA violations, which prompted the adjudication proceedings. BBC WS India, which was fully foreign-owned, was involved in digital news and current affairs but did not reduce its foreign direct investment to the mandated 26%, instead maintaining it at 100% in violation of Indian government regulations. According to officials, on September 18, 2019, the Department for Promotion of Industry and Internal Trade (DPIIT) released a press note restricting FDI in digital media at 26% through government approval. The total penalty for BBC WS India is Rs.3,44,48,850, plus a daily fine of Rs.5,000 beginning October 15, 2021, until compliance with FEMA regulations. Three BBC directors, Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons, were each fined Rs.1,14,82,950 for their involvement in managing corporate activities during the infringement. The Central Board of Direct Taxes (CBDT) found that the income and profits stated by several BBC group firms did not reflect their operational scale in India, and certain foreign remittances were not taxed.