ED slaps Rs 3.44 crore penalty on BBC India for FEMA violations

Three directors fined Rs 1.14 crore each

by e4m Staff
Published: Feb 22, 2025 10:20 AM | 2 min read

The Enforcement Directorate has levied a penalty of Rs 3.44 crore penalty British Broadcasting Company (BBC) India under the Foreign Exchange Management Act (FEMA) for alleged foreign exchange violations. The agency has imposed a fine of Rs 1.14 crore each on three BBC directors, according to media reports.

The penalty comes two years the ED registered a case against the broadcasting company.

According to media reports, the total penalty amounts to Rs 3,44,48,850, along with an additional fine of Rs 5,000 per day from October 15, 2021, until compliance is met. The three directors — Giles Antony Hunt, Indu Shekhar Sinha and Paul Michael Gibbons — have been fined Rs 1,14,82,950 each for their roles in overseeing the company’s operations during the period of alleged violation.

The ED’s action follows a show-cause notice issued on August 4, 2023, to BBC WS India, its three directors and its finance head, citing multiple contraventions of FEMA regulations. The investigation was launched months after the Income Tax Department conducted a survey at BBC’s Delhi office in February 2023.

In connection with the case, raids were conducted at the BBC premises in Delhi and Mumbai in February.

Following the three-day raids, the government had released a statement providing the details of the action. In the statement, without naming BBC, the government had said they have found evidences pertaining to the operation of the organization which indicate that tax has not been paid on certain remittances which have not been disclosed as income in India by the foreign entities of the group.

“A survey action under section 133A of the Income- tax Act, 1961(the Act) was carried out at the business premises of group entities of a prominent international media company at Delhi and Mumbai. The group is engaged in the business of development of content in English, Hindi and various other Indian languages; advertisement sales and market support services, etc,” read the statement.