The Enforcement Directorate on Wednesday, April 12, filed a case against BBC India under the Foreign Exchange Management Act (FEMA) over allegations of violating foreign exchange laws. This move comes after February 2023 Income Tax Department survey in BBC offices in India. The IT Dept had non compliance with transfer pricing rules and diversion of profits. The three-day-long investigation concerned international taxation and the suspected transfer of BBC revenues.
According to the reports, the Income Tax officials had in February studied the digital data and interrogated a few of its employees at BBC India office. Some of the officers were also stationed on the fifth floor of the BBC offices where the editorial staff works.
The survey was conducted as a result of BBC’s willful disregard for the Transfer Pricing Rules and its massive profit-diversion practices. Amid the survey, the liberals and opposition parties alleged that the Center had directed the raids after the media house published a documentary regarding PM Modi and the Gujarat riots 2002.
During the raids, the agency advised employees of BBC India to refrain from deleting any files from their digital devices until the survey is finished. Reports mention that the officers only copied the digital data and none of the journalists phones were taken away. However, senior BBC staffers’ mobile phones were copied during the operation, which also involved scanning a number of computers and laptops. Afterwards, the computers and phones were returned to the authorities.
This is a developing story, more details awaited.
