ED levies penalty of ₹3.44 crore on BBC India; ₹1.14 crore each on its 3 directors for FEMA violation

The Enforcement Directorate (ED) has levied a penalty on British Broadcasting Corporation (BBC) India and its directors alleging that the company violated India’s foreign funding law by not reducing its foreign funding despite the cap of 26% on digital media organisations, people familiar with the development said on Friday.

The company, which was earlier surveyed by the Income Tax department in February 2023, has been fined a total of over ₹3.44 crore, along with a fine of ₹5,000 for every day after October 15, 2021, till the date of compliance.

“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,” said an officer, who asked not to be named.

This officer added that “additionally, directors – Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons have each been fined ₹1,14,82,950 for their roles in overseeing company operations during the period of contravention”.

The ED had launched a FEMA probe against BBC India in April 2023, based on the findings of the Income Tax department that carried out a three-day survey at the company’s offices in Delhi and other cities in February same year.

A second officer cited above said the adjudication proceedings under FEMA were initiated “after a show cause notice was issued on August 4, 2023, to BBC WS India, its three directors, and the finance head”.