ED launches probe into BBC’s violation of India’s forex law

The Enforcement Directorate has launched an investigation into alleged violations of India’s foreign exchange regulation norms by BBC and the broadcaster has been asked to provide financial details.

A case has been filed against BBC India the Foreign Exchange Management Act, 1999 (FEMA) for irregularities in foreign funding and diversion of funds in violation of the country’s law.

An officer of BBC’s administrative and editorial departments is being questioned at ED’s headquarters in New Delhi, according to news agency ANI.

The BBC’s foreign remittances are being scrutinised by the Enforcement Directorate, according to sources.

The ED investigation is based on the findings of the Income Tax department in a survey action at BBC offices in Delhi and Mumbai in February this year.

“The survey revealed that despite substantial consumption of content in various Indian languages (apart from English), the income/profits shown by various group entities is not commensurate with the scale of operations in India,” the Central Board of Direct Taxes (CBDT) had said in a statement in February.

CBDT also said that evidence has emerged which indicates “the company has not paid taxes on certain remittances”,

Besides, IT sleuths had found several discrepancies in the transfer pricing documentation of the BBC.