Synopsis
BBC India faces a substantial penalty of Rs 7.47 crore due to non-compliance with foreign ownership regulations. The Enforcement Directorate's ongoing investigations raise questions about the broadcaster's operations amid allegations of government targeting and scrutiny from tax authorities.Key Takeaways
- ED imposes Rs 7.47 crore penalty for foreign ownership violations.
- Investigation still ongoing with daily fines since October 2021.
- BBC India considers options amid allegations of targeting.
- Income tax authorities question BBC's financial reporting.
- Historical context of government actions against BBC in India.
New Delhi, Feb 22 (NationPress) The Enforcement Directorate has imposed a penalty of Rs 7.47 crore on BBC India for failing to limit foreign ownership to 26 percent. This includes Rs 3.44 crore on the organization itself, Rs 1.14 crore each on three directors, and an additional Rs 61 lakh. Officials disclosed that the ED’s investigations are still "ongoing".
According to sources, the ED has been imposing a daily fine of Rs 5,000 since October 15, 2021, and these proceedings may continue until compliance is achieved.
In light of the allegations suggesting that it is being unfairly targeted by government entities for its critical coverage, BBC India is reportedly considering its options.
In addition to ED challenges regarding foreign exchange regulations, the broadcaster is also under scrutiny from income tax authorities, which claim that certain remittances related to BBC entities in India were not properly taxed.
The Indian tax authorities have raised concerns about BBC’s financial records, arguing that the income and profits reported do not align with the scale of operations in India.
In March 2023, the ED conducted searches at BBC offices in New Delhi and Mumbai for three days and interrogated staff members.
Following these searches, the BBC issued a statement affirming, "We will continue to cooperate with the authorities and hope matters are resolved as soon as possible. We will continue to report without fear or favor."
According to BBC’s website, the broadcaster provides services in Hindi, Bengali, Nepali, Tamil, Gujarati, Marathi, Punjabi, and Telugu for the Indian audience.
The Delhi Bureau is one of the largest news operations of the BBC outside London, reinforcing the BBC’s commitment to broadcasting in the subcontinent.
This is not the first time BBC has faced action from the Indian government. It was expelled for two years for airing two controversial documentaries in 1970.
After the declaration of a State of Emergency by Prime Minister Indira Gandhi in 1975, the BBC faced a second expulsion for five years from India, as documented on BBC’s website.
