ED fines Rs 3.44 crore penalty on BBC India for FEMA breach, penalizes three directors ₹1.15 crore

ED slaps ₹3.44 crore fine on BBC India for FEMA breach, penalizes three directors ₹1.15 crore

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

Additionally, three directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—have each been fined ₹1.15 crore for their roles in supervising operations during the period of non-compliance.

“The Directorate of Enforcement has issued an adjudication order today, levying a penalty of ₹3,44,48,850 on BBC WS India, along with a fine of ₹5,000 per day after October 15, 2021, till compliance is met,” a senior ED official quoted in a News18 report said.

This action follows earlier financial investigations into BBC India, intensifying scrutiny of foreign media entities operating in the country. The ED’s probe stemmed from a show-cause notice issued on August 4, 2023, to BBC WS India, its directors, and the finance head.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), digital media companies are subject to a 26% foreign direct investment (FDI) cap under the government’s approval route. However, BBC WS India, a fully foreign-owned entity engaged in digital news streaming, did not reduce its FDI to the mandated limit, continuing with 100% foreign ownership in violation of Indian regulations, the ED official stated.