The Enforcement Directorate (ED) has imposed a fine of over Rs 3.44 crore on BBC World Service India. According to news agency PTI, ED officials say the fine has been imposed for alleged violation of FDI (FDI) rules. The ED has also issued an agitate order against BBC India under the Foreign Exchange Management Act (FEMA) and has also imposed a fine of over Rs 1.14 crore on each of its 3 directors.
Under the FEMA, the BBC World Service India, its 3 directors and Finance Head were initiated after the increase notice was issued on 4 August 2023 after a show cause notice was issued.
What is the matter
The BBC World Service India works for uploading/streaming of news and current affairs through Digital Media. According to PTI, sources say the company is a 100 percent FDI company. This did not reduce its FDI to 26 percent, but kept it at 100 percent, which is a severe violation of the rules issued by the Government of India. The Press Note 4 issued by the Department of Industries Promotion and Internal Trade (DPIIT) has set a 26 percent FDI limit for digital media through government approval.
According to sources, the total fine imposed on BBC World Service India is Rs 3 crore 44 lakh 48 thousand 850. Also, a fine of Rs 5,000 has been imposed every day by the date of compliance since 15 October 2021 for violation of the provisions of FEMA, 1999. 3 directors of BBC- G. Antony Hunt, Indu Shekhar Sinha and Paul Michael Gibbons have been fined Rs 1,14,82,950 for their role in the supervision of the company during the period of violation.
