NEW DELHI: As an inspection at the British broadcaster's offices in New Delhi and Mumbai entered its third day on Thursday, two sources told Reuters that Indian tax officials looked at laptops and mobile devices used by some editorial and administrative staff at the BBC.

Witnesses claim that tax officials had remained at the BBC's offices since the surprise inspection began on Tuesday, some even sleeping there. Others claimed that some employees were questioned into the night about financial transactions.

"They (officials) asked some of us to open our laptops and hand in our phones, and then they handed it back," one source told Reuters, adding that owners of the devices were asked for access codes. A second source gave a similar account.

The tax department's action came just weeks after the government reacted angrily to a BBC documentary that raised questions about Prime Minister Narendra Modi's role in the deadly communal riots in Gujarat in 2002, when he was the state's chief minister.

The government branded the documentary "India: The Modi Question" as propaganda and barred it from being viewed or shared on social media.

The BBC has stood by its reporting, which looked into one of India's worst outbreaks of religious violence in modern times. At least 1,000 people, mostly Muslims, were killed in the bloodbath, though activists believe the death toll is much higher.

The BBC said it was "fully cooperating" with tax authorities, and an internal memo from BBC World Service director Liliane Landor instructed staff to answer questions honestly and "not delete or conceal any information on any of your devices."

The tax department has not issued a statement or responded to requests for comment, but a government official denied that the tax survey was "vindictive," citing transfer pricing rules and alleged profit diversion.

Kanchan Gupta, a senior adviser at the Ministry of Information and Broadcasting, told Times Now on Wednesday that the BBC had previously been served with tax notices but had not provided a "convincing response."

Some international companies have come under the income tax scanner in recent years due to transfer pricing rules, but several media organizations and rights groups have criticized the BBC's ongoing search.

"We demand that this intimidation cease and that journalists be allowed to do their jobs without fear or favor," said the Mumbai Press Club in a statement.