Enforcement Directorate registers case against BBC India for alleged foreign exchange violations

Legal troubles are surmounting BBC India as the Enforcement Directorate (ED) has now registered a case against the British news broadcaster for alleged foreign exchange violations, according to official sources. The federal probe agency has called for documents and statements of some company executives under the provisions of the Foreign Exchange Management Act (FEMA) as part of its investigation into purported foreign direct investment (FDI) violations by the company.

This development comes after the Income Tax (IT) department surveyed BBC office premises in Delhi in February, which revealed several discrepancies and inconsistencies with regard to transfer pricing documentation.

The Central Board of Direct Taxes (CBDT), the administrative body for the IT department, had claimed that the income and profits shown by various BBC group entities were "not commensurate" with the scale of their operations in India and tax had not been paid on certain remittances by its foreign entities.