ED Lodge FEMA Against BBC India

ED Lodge FEMA Against BBC India
ED Lodge FEMA Against BBC India
ED Lodge FEMA Against BBC India

According to official sources cited by news agency PTI, the Enforcement Directorate has filed a FEMA case against BBC India for foreign exchange violations.
The agency has requested the documents and statements of several company executives under the Foreign Exchange Management Act (FEMA). The investigation is centered on alleged violations of foreign direct investment (FDI) by the company.

This development follows a survey of BBC office premises in Delhi by the Income Tax department in February.

The Central Board of Direct Taxes (CBDT), which oversees the I T department, had previously stated that the income and profits reported by various BBC group entities did not match the scale of their operations in India and that tax had not been paid on some remittances made by foreign entities.

What is FEMA ?

The aim of the Foreign Exchange Management Act (FEMA) is to regulate the flows of foreign exchange in India. It was introduced in 1999, replacing the Foreign Exchange Regulation Act (FERA) of 1973.

FEMA was created in response to changing economic conditions in post-liberalization India, following the balance of payments crisis of 1991-92. As foreign exchange reserves grew, policymakers in India decided to ease restrictions on the use of foreign exchange for travel, education, and other expenses.

They also considered making the rupee convertible on the current account, which deals with these transactions. In the 1994-95 Budget, Finance Minister Manmohan Singh announced that the rupee was being made convertible on the current account.

The aim was to ease the path for Indian firms and individuals who had faced severe restrictions on the use of foreign exchange for decades due to limited reserves.

After the Indian economy recovered and the balance of payments position improved faster than expected, the central bank conducted a review of the Foreign Exchange Regulation Act (FERA) in 1994. This was prompted by an announcement made by the Finance Minister at the time, Manmohan Singh, to review and replace FERA with a new law. The review aimed to make necessary changes to regulate the flow of foreign exchange in the country, taking into account the changing economic conditions after liberalization.


For breaking news and live news updates, like us on Facebook fb.com/thevoiceofsikkim or follow us on Twitter twitter.com/thevoicesikkim and Instagram instagram.com/thevoiceofsikkim. Visit www.voiceofsikkim.com.

The Voice Of Sikkim | Sikkim Live | Himdarpan | The Siliguri Today | Samvad