The Indian Enforcement Directorate (ED) has initiated an enquiry against the BBC for foreign exchange violations that do not comply with the Foreign Exchange Management Act.
The BBC has not yet responded to the allegations.
Overview
According to sources cited by Indian Express, the case was registered earlier this month. The authorities have interrogated six employees, including a BBC India director, to investigate the allegations. In addition, they have asked the media house to present documents and summoned company executives to record statements.
"Propaganda..shows colonial mindset", MEA Spox @MEAIndia @abagchimea hits out at BBC documentary on PM Modi pic.twitter.com/PR58CgMNG0
— Sidhant Sibal (@sidhant) January 19, 2023
In particular, the authorities are looking into the company’s misuse of foreign direct investments.
The investigation was launched following February’s raid at the BBC’s New Delhi and Mumbai offices over “non-compliance” for “manipulation of prices for unauthorised benefits, including tax advantages.”
The Income Tax Department accused the media house of knowingly misusing a significant amount of its profit. They said that the profits and income shown were not “commensurate with the scale of operations in India.”
I didn't see documentary but I've seen reactions in UK & India. BBC is an independent organisation & separate from govt. I enjoy a strong personal relationship with Dr Jaishankar...relationship b/w UK-India growing stronger by the day:UK Foreign Secy on BBC documentary on PM Modi pic.twitter.com/NLsen7ngXR
— ANI (@ANI) March 1, 2023
In addition, the agency said, “tax has not been paid on certain remittances, which have not been disclosed as income in India by the foreign entities of the group.”
The raid was followed by a search and seizure operation, wherein authorities scrutinized accounts and documents.
BBC Documentary
Commentators claim that the February raid was a response to a BBC documentary released on 17 January titled “India: The Modi Question.” It accused Indian PM Narendra Modi, then Chief Minister of Gujarat, of playing a “proactive part” in encouraging the 2002 riots.
During a press briefing, Ministry of External Affairs Spokesperson Arindam Bagchi said the documentary reflects the BBC’s “bias, lack of objectivity, and continuing colonial mindset.”
However, opposition leaders and journalists called the survey operations an attack on press freedoms and democracy in India. For instance, the Editors Guild of India expressed its concern, referring to it as a continuing “trend” of the government to “intimidate and harass” media houses critical of the government.