New Delhi, Feb 21: The Enforcement Directorate has imposed a fine exceeding Rs 3.44 crore on BBC World Service India for purported violations of foreign direct investment (FDI) regulations, officials from the agency disclosed on Friday.
The federal investigation agency has also penalized three directors with fines surpassing Rs 1.14 crore each, following an adjudication order issued against the British broadcaster under the Foreign Exchange Management Act (FEMA).
The adjudication process was initiated after a show-cause notice was served on August 4, 2023, addressing BBC WS India, its three directors, and the finance head over multiple alleged “contraventions” of the law.
BBC WS India, a company with 100% FDI engaged in the digital streaming of news and current affairs, reportedly “failed” to reduce its FDI to 26% and maintained a 100% stake, which is considered a “gross violation” of the regulations set forth by the Indian government, according to sources.
As per press note 4 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on September 18, 2019, a 26% FDI limit for digital media is stipulated under the government approval route.
The cumulative penalty imposed on BBC WS India totals Rs 3,44,48,850, in addition to a daily fine of Rs 5,000 for each day post-October 15, 2021, until compliance for infringing the provisions of FEMA, 1999, sources revealed.
The three directors of BBC, namely Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons, have been fined Rs 1,14,82,950 each for their oversight during the period of violation.
