NEW DELHI:
The Enforcement Directorate (ED) on Thursday registered a case against the British Broadcasting Company (BBC), India, under provisions of the Foreign Exchange Management Act (FEMA) for alleged foreign exchange violation and has summoned a senior journalist to appear before it with certain documents, sources in the agency said.
The sources said in the past few days, several officials and layers of the BBC, India, have deposed before the agency and submitted documents relating to the case linked to the alleged violation of income tax rules.
Earlier in February, the Income Tax Department had carried out surveys at the premises of the BBC in New Delhi and Mumbai, on what it alleged was “non-compliance” with transfer pricing rules and diversion of profits.
The I-T Department had alleged that the BBC deliberately diverted a significant amount of profits, and did not follow the arm’s length arrangement in the case of allocation of profit.
The tax department’s action came weeks 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 Central Government 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” and had “the potential to adversely impact” the country’s “friendly relations with foreign states” and “public order within the country”.
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