New Delhi - The Enforcement Directorate (ED) has initiated an investigation against BBC India for violating the Foreign Exchange Management Act (FEMA) related to purported foreign direct investment (FDI) violations. The probe involves questioning of some company executives and requesting documents.

The action comes after the Income-Tax Department conducted surveys at BBC office premises in Delhi and Mumbai in February for alleged non-compliance with transfer pricing rules and diversion of profits. The I-T department had also flagged distribution revenue earned by BBC World Distribution Ltd for tax liability as royalty, which was later ruled by the Delhi bench of the Income Tax Appellate Tribunal to not be in the nature of royalty.

The focus of the surveys was to investigate the manipulation of prices for unauthorized benefits and non-compliance with transfer pricing norms. The investigation against BBC India is ongoing, and the ED has already questioned six employees, including a director.

Earlier, in January, BBC had released a documentary on the 2002 Gujarat riots titled ‘India: The Modi Question’.

The central government had 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”.

The investigation against BBC India comes in the backdrop of the Income-Tax Department surveys and the alleged government's action against the release of the documentary.