ED slaps Rs.3.44 crore penalty on BBC World Service India for FDI violations; fines 3 directors Rs.1.44 crore each

BBC World Service India faces trouble as ED imposes penalty

The Enforcement Directorate (ED) has levied a penalty of more than Rs.3.44 crore on BBC World Service India for contravention of foreign direct investment (FDI) regulations, agency officials said on Friday.

The federal probe agency also fined three of its directors with more than Rs.1.14 crore each as it issued an adjudication order against the British broadcaster under the Foreign Exchange Management Act (FEMA).

The adjudication proceedings were initiated after a show-cause notice was issued on August 4, 2023, to BBC WS India, its three directors, and the finance head for various “contraventions” under the said law.

BBC WS India, which is a 100 percent FDI company, engaged in uploading/streaming news and current affairs through digital media but “did not” reduce their FDI to 26 percent, and kept it at 100 percent in “gross violation” of the regulations issued by the Government of India, sources said.

The Press Note 4 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on September 18, 2019, stipulates a 26 percent FDI cap for digital media under the government approval route, they said. The total penalty levied on BBC WS India stands at Rs.3,44,48,850, along with a fine of Rs.5,000 for every day after 15.10.2021 till the date of compliance for violation of the provisions of FEMA, 1999, said officials.

Three BBC Directors — Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons — have each been fined Rs.1,14,82,950 for their roles in overseeing company operations during the period of contravention, they said.

For all the latest updates, download PGurus App.

The post ED slaps Rs.3.44 crore penalty on BBC World Service India for FDI violations; fines 3 directors Rs.1.44 crore each appeared first on PGurus.