Enforcement Directorate Fines BBC World Service Over Foreign Investment Breach

The Enforcement Directorate today slapped a penalty of more than Rs 3.44 crore on BBC World Service India, alleging the British broadcaster violated foreign direct investment regulations. The federal agency also imposed fines exceeding Rs 1.14 crore each on three of the company’s directors, intensifying scrutiny under the country’s foreign exchange laws.

The penalties were detailed in an adjudication order under the Foreign Exchange Management Act, following a show-cause notice issued on August 4, 2023, to BBC WS India, its directors—Giles Antony Hunt, Indu Shekhar Sinha, and Paul Michael Gibbons—and its finance head. The agency claims the company, wholly owned by foreign investors, failed to reduce its 100 percent foreign direct investment to the 26 percent ceiling mandated for digital media firms by a 2019 government policy.

Officials said BBC WS India, which delivers news and current affairs through digital platforms, operated in “gross violation” of Press Note 4, issued by the Department for Promotion of Industry and Internal Trade on September 18, 2019. The regulation caps foreign investment in digital media at 26 percent under the government approval route, a measure aimed at tightening oversight of foreign media operations in India.

The total fine on BBC WS India stands at Rs 3,44,48,850, with an additional Rs 5,000 daily penalty starting October 15, 2021, until compliance is met. Each of the three directors has been fined Rs 1,14,82,950 for their roles in managing the company during the breach, according to agency sources.

The action highlights India’s growing emphasis on enforcing financial compliance among foreign entities, set against a backdrop of debates over media autonomy and investment rules. As of Friday evening, neither BBC WS India nor its directors had issued a public response to the penalties.