India’s financial crime-fighting agency, the Enforcement Directorate (ED), has imposed a hefty fine on the BBC World Service India for violations of the 1999 Foreign Exchange Management Act (FEMA). According to reports from the Hindustan Times, the BBC has been fined £314,510 ($397,980), with additional penalties applied to three directors of the company for their involvement in the violations.
The directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—have been individually fined £104,836 ($132,400) for overseeing company operations during the period of contravention. An extra penalty of $57.6 per day has been added, applicable from October 15, 2021, until the company complies with the regulations.
The investigation, which led to the fine, began in April 2023, following tax raids on BBC offices in Delhi and Mumbai. The raids were launched under suspicions of non-compliance with India’s transfer pricing rules and the diversion of profits. Reports suggest the BBC World Service India was found to have violated foreign investment regulations by maintaining 100% foreign direct investment (FDI) in its digital operations, surpassing the 26% cap that the Indian government set in 2019.
The probe into the BBC’s finances is also linked to the broadcaster’s controversial documentary on Prime Minister Narendra Modi and the Gujarat riots. Released in early 2023, the documentary focused on Modi’s role during the 2002 violence in Gujarat when he served as the state’s chief minister. The documentary was banned by the Indian government, which labeled it as “propaganda” and accused the BBC of bias.
In response to the fine, the BBC issued a statement expressing its commitment to operating within the rules of every country where it is based. The broadcaster indicated that it would carefully review the order and decide on the next steps once it is formally received.
The investigation and penalties come amid strained relations between the Indian government and the BBC, especially following the broadcaster’s critical coverage of Modi’s handling of the 2002 Gujarat riots, a period of intense communal violence that led to widespread loss of life and displacement.
