The Enforcement Directorate has levied a fine of over Rs 3.44 crore on BBC World Service India for alleged violations of foreign direct investment (FDI) regulations, officials confirmed on Friday.
Additionally, the agency imposed penalties exceeding Rs 1.14 crore each on three directors through an adjudication order against the British broadcaster under the Foreign Exchange Management Act (FEMA). The proceedings were initiated after a show-cause notice was issued on August 4, 2023, to BBC WS India, its directors, and its finance head for multiple regulatory infractions.
BBC WS India, which operates entirely on foreign direct investment, provides news and current affairs content via digital platforms. However, according to official sources, the company failed to comply with government regulations by maintaining 100 percent FDI instead of reducing it to the mandated 26 percent.
As per Press Note 4 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on September 18, 2019, digital media entities are required to limit FDI to 26 percent under the government approval route.
The total financial penalty on BBC WS India stands at Rs 3,44,48,850, along with an additional daily fine of Rs 5,000 from October 15, 2021, until compliance is met, for violating provisions of FEMA, 1999.
The three BBC directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—have been individually fined Rs 1,14,82,950 for their role in overseeing operations during the period of non-compliance.