February 21st 2025.
The Enforcement Directorate, a federal probe agency, has recently imposed a penalty of more than Rs 3.44 crore on BBC World Service India for allegedly violating foreign direct investment regulations. According to officials, the company has also been fined an additional Rs 1.14 crore each for three of its directors, as the agency issued an adjudication order under the Foreign Exchange Management Act.
This action was taken after a show-cause notice was issued on August 4, 2023, to BBC WS India, its three directors, and the finance head for various "contraventions" of the aforementioned law. Sources reveal that BBC WS India, a 100% FDI company, primarily deals with uploading and streaming news and current affairs through digital media. However, they have failed to reduce their FDI to the stipulated 26%, and instead kept it at 100%, which is a "gross violation" of the regulations set by the Indian government.
According to sources, a press note issued by the Department for Promotion of Industry and Internal Trade on September 18, 2019, clearly states that digital media is subject to a 26% FDI cap under the government approval route. Despite this, BBC WS India continued to violate the regulations, leading to a total penalty of Rs 3,44,48,850. In addition, they have also been charged Rs 5,000 for each day after 15.10.2021 until they comply with the provisions of FEMA, 1999.
Furthermore, the sources reveal that three directors of BBC- Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons- have been individually fined Rs 1,14,82,950 for their involvement in overseeing the company's operations during the period of contravention. This is a clear indication of the severity of the violation and the responsibility of the directors in ensuring compliance with the regulations.
In conclusion, the Enforcement Directorate has taken strict action against BBC World Service India for their blatant disregard of foreign direct investment regulations. The penalty and fines imposed on the company and its directors serve as a warning to all companies operating in India to adhere to the laws and regulations set by the government.
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