ED has imposed a penalty of Rs 3,44,48,850 on BBC World Service India in case of violation of Foreign Exchange Management Act (FEMA). Along with this, a penalty of Rs 1,14,82,950 has been imposed separately on the three directors who were looking after the operations of the company at that time
BBC World Service India is accused of continuing 100 percent foreign investment even after imposing a limit of 26 percent foreign investment in digital media. According to the order issued by ED on February 21, there is a provision of a fine of Rs 5,000 per day on BBC World Service India in case the penalty is not deposited. This fine amount will be collected from October 15, 2021
In fact, the Department of Promotion of Industry and Internal Trade had issued a press note on September 18, 2019, informing about setting the limit of foreign investment in digital media at 26 percent.
In the same press note, companies were given time till October 15, 2021 to bring foreign investment up to 26 percent as per the new rule. But the directors of BBC World Service India deliberately violated this deadline and continued 100 percent foreign investment.
Full fine will have to be paid, director also trapped