India’s Enforcement Directorate (ED) has imposed a penalty of over Rs 3.44 crore on BBC World Service India for allegedly violating foreign direct investment (FDI) regulations, officials confirmed on Friday.
The agency has also reportedly fined three directors — Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—₹1.14 crore each as part of an adjudication order issued under the Foreign Exchange Management Act (FEMA).
The action follows a show-cause notice sent to BBC World Service India on 4 August 2023, along with its three directors and finance head, citing various violations.
According to sources, the company, which operates with 100% foreign investment, continued streaming news and current affairs online without reducing its FDI to 26%, as required by Indian regulations. Government rules issued in September 2019 capped foreign investment in digital media at 26% under the approval route, but BBC allegedly did not comply.
As part of the penalty, the company must also pay an additional Rs. 5,000 for each day of non-compliance beyond 15 October 2021.
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