The Enforcement Directorate (ED) has registered a case against British Broadcasting Company (BBC) India under the Foreign Exchange Management Act (FEMA) for alleged foreign exchange violations. The case was registered two weeks ago and the agency has questioned six employees, including one of the directors of BBC India, officials said. The ED action follows surveys by the Income-Tax Department in February at BBC premises in New Delhi and Mumbai for the firm’s alleged “non-compliance” with transfer pricing rules and diversion of profits. The tax department’s action came after the British broadcaster had on January 17 released a documentary on the 2002 Gujarat riots titled “India: The Modi Question”. On January 20, the Centre ordered YouTube and Twitter to take down links sharing the documentary with officials saying it was found to be “undermining the sovereignty and integrity of India.” Sources said ED has called for documents and the recording of statements of some company executives under provisions of the FEMA. The probe is essentially looking at purported foreign direct investment (FDI) violations by the company. “Questioning is going on,” an official said. Asked about the timing of the action against BBC at the India Today conclave, the Union Home Minister had said that correspondence between tax authorities and the company had been on for three years. Shah had questioned the timing of the documentary saying it was about events in 2002 and was being released a year before elections in 2024. After three days of surveys in February, the Income Tax department had said it had found “several discrepancies and inconsistencies with regard to transfer pricing documentation”. It also said the income and profits shown by various BBC group entities are “not commensurate with the scale of operations” in India. The BJP accused the BBC of “venomous” reporting. The BBC has denied any wrongdoing. A BBC spokesperson said: “We will continue to cooperate fully with the Indian authorities to ensure that we comply with all our obligations,”. The Opposition questioned the timing of the tax survey calling it tactics of “intimidation.”
