The Enforcement Directorate (ED) has fined BBC India ₹3.44 crore for allegedly breaching the Foreign Exchange Management Act (FEMA), 1999. According to an adjudication order issued on February 21, 2025, the agency has also instructed the news organization to pay an extra ₹5,000 per day from October 15, 2021, until the violations are resolved.
Moreover, three directors responsible for overseeing operations during this period have been penalized around ₹1.15 crore.
ED Fines BBC India ₹3.44 Crore
The Enforcement Directorate (ED) has imposed a penalty on BBC India and its directors for allegedly violating India’s foreign funding regulations. The company failed to reduce its foreign investment despite a 26% cap on digital media organizations, according to sources familiar with the matter.
Previously surveyed by the Income Tax department in February 2023, BBC India has been fined over ₹3.44 crore, along with an additional ₹5,000 per day from October 15, 2021, until compliance is met.
An ED official stated that an adjudication order was issued on Friday, penalizing BBC WS India ₹3,44,48,850 for breaching the Foreign Exchange Management Act (FEMA), 1999. Additionally, directors Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons have each been fined ₹1,14,82,950 for overseeing company operations during the violation period.
ED Investigates BBC India for FEMA Violations
The Enforcement Directorate (ED) launched an investigation into BBC India under the Foreign Exchange Management Act (FEMA) in April 2023. This probe was based on findings from an Income Tax department survey conducted in February 2023 at the company’s offices in Delhi and other cities.
According to an ED official, adjudication proceedings under FEMA began after a show cause notice was issued on August 4, 2023, to BBC WS India, its three directors, and its finance head.
Explaining the violation, the officer stated that on September 18, 2019, the Department for Promotion of Industry and Internal Trade (DPIIT) introduced a 26% cap on foreign direct investment (FDI) in digital media under the government approval route. However, BBC WS India, a fully foreign-owned company engaged in digital news streaming, failed to comply and retained 100% FDI, violating Indian regulations.
Attempts to get a response from BBC remained unanswered at the time of reporting.
Earlier, the Income Tax department’s survey suggested that BBC’s reported income and profits did not align with its scale of operations in India. Evidence also indicated potential tax evasion on certain remittances, as per a statement by the Central Board of Direct Taxes (CBDT) in February 2023.
In response, a BBC spokesperson had stated in February 2023 that the company was cooperating with authorities and hoped for a swift resolution. “The BBC is a trusted, independent media organization, and we stand by our colleagues and journalists who will continue reporting without fear or favor,” the statement added.
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About FEMA Act 1999
The Foreign Exchange Management Act (FEMA) was introduced in 1999, replacing the Foreign Exchange Regulation Act (FERA) of 1973. This civil law aims to streamline and update regulations related to foreign trade and payments while ensuring a well-regulated foreign exchange market in India.
The Enforcement Directorate (ED) is responsible for investigating violations of foreign exchange laws, conducting adjudications, and imposing penalties on those found guilty of non-compliance.
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FAQs
Q.1. Why did the Enforcement Directorate fine BBC India?
Ans. The ED fined BBC India ₹3.44 crore for violating FEMA regulations by exceeding the 26% foreign direct investment (FDI) cap in digital media.
Q.2. What penalties were imposed on BBC India’s directors?
Ans. Three directors, Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons, were each fined ₹1.15 crore for overseeing operations during the violation period.
Q.3. What is FEMA, and how does it regulate foreign investments?
Ans. The Foreign Exchange Management Act (FEMA) governs foreign exchange transactions in India, ensuring compliance with trade, investment, and foreign currency regulations.
Q.4. When did the investigation into BBC India begin?
Ans. The ED launched its probe in April 2023 following an Income Tax survey in February 2023, which raised concerns over BBC India’s financial compliance.
Q.5. What was BBC India’s response to the ED’s penalty?
Ans. BBC India has yet to respond to the latest penalty, but previously stated in 2023 that it was cooperating with authorities and remained committed to independent journalism.
