ED Imposes 3 Crore Fine on BBC India, Directors Under Fire

New Delhi (The Uttam Hindu): The Enforcement Directorate (ED) has imposed a fine of Rs 3.44 crore on BBC World Service India for violating Foreign Exchange Management Act (FEMA) regulations. In addition, a penalty of Rs 1.14 crore has been imposed on three directors responsible for operations at the time of the violation.

The issue stems from BBC World Service India's failure to comply with a rule that limits foreign investment in digital media to 26%. The Department of Promotion of Industry and Internal Trade (DPIIT) issued a press note on September 18, 2019, setting the foreign investment cap at 26% and giving companies until October 15, 2021, to comply. However, BBC continued to operate with 100% foreign investment, violating the rule.

As a result, the ED has directed that BBC World Service India pay a fine of Rs 5,000 per day starting from October 15, 2021, until the full penalty of Rs 3.44 crore is paid. The three directors—Giles Antony Hunt, Indu Shekhar Sinha and Paul Mitchell Gibbons—have been found responsible for not adhering to the new foreign investment regulations.

The imposition of this penalty highlights the importance of complying with foreign investment limits in India’s digital media sector, particularly in light of the new regulations aimed at limiting foreign influence.