ED Slaps Rs 3.44 Crore Penalty On BBC India For FEMA Violations, Fines 3 Directors Rs 1.15 Crore

Last Updated:February 21, 2025, 20:20 IST

The ED’s move comes in the wake of previous financial investigations into BBC India, raising fresh concerns over regulatory compliance, FEMA rules, and enforcement

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 certain contraventions. Representational image/Reuters

The Enforcement Directorate (ED) has imposed a hefty penalty of Rs 3.44 crore on BBC World Service (India) for allegedly violating the Foreign Exchange Management Act (FEMA), 1999. In an adjudication order dated February 21, 2025, the central agency also directed the international news organisation to pay an additional amount of Rs 5,000 per day for non-compliance from October 15, 2021, until the violations are rectified.

Additionally, three of its directors have been fined approximately Rs 1.15 crore for supervising operations during this period.

A senior ED official said, “The Directorate of Enforcement has issued an adjudication order today, levying a penalty of Rs 3,44,48,850 on BBC WS India, along with a fine of Rs 5,000 for every day after October 15, 2021, till the date of compliance, for violation of provisions of FEMA, 1999.”

“Additionally, 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,” the official added.

The legal action by the directorate marks a significant escalation in the scrutiny of foreign entities operating in India, particularly media houses. The ED’s move comes in the wake of previous financial investigations into BBC India, raising fresh concerns over regulatory compliance, FEMA rules, and enforcement.

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 certain contraventions. According to a press note issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in September 2019, there can be a stipulation of a 26% FDI cap for digital media under the government’s approval route.

However, BBC WS India, which is a 100% FDI company engaged in uploading/streaming news and current affairs through digital media, did not reduce its FDI to 26% and kept it at 100% in gross violation of regulations issued by the Government of India, said the senior official.

News india ED Slaps Rs 3.44 Crore Penalty On BBC India For FEMA Violations, Fines 3 Directors Rs 1.15 Crore



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