I-T authorities survey BBC offices in India amid Modi documentary fallout
In an unexpected move, the Income Tax Department on Tuesday conducted survey operations at the BBC‘s offices in Delhi and Mumbai as part of an investigation into alleged tax evasion. Income Tax sleuths landed in BBC’s Delhi and Mumbai offices after the broadcaster aired a critical documentary on Prime Minister Narendra Modi.
The action, which led to a sharp political debate with the ruling BJP accusing the BBC of “venomous reporting” and the opposition questioning the timing of the move, comes weeks after the broadcaster aired a two-part documentary, “India: The Modi Question“, on Modi and the 2002 Gujarat riots, blaming his role in Hindu-Muslim violence where more than 1000 people dead.
The survey is being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies, officials said. BBC had been served notices in the past but was “defiant and non-compliant” and had significantly diverted its profits, they alleged. The department is looking at documents related to the business operations of the London-headquartered broadcaster and its Indian arms, they said.
The BBC said it is fully cooperating with tax authorities. “The Income Tax authorities are currently at the offices in New Delhi and Mumbai and we are fully cooperating. We hope to have this situation resolved as soon as possible,” the press office of the BBC said on Twitter.
The synchronised surprise action began at 11 am with Income Tax officials reaching the BBC offices in Delhi and in Mumbai and went on for several hours till late evening. Journalists working at BBC office said that tax sleuths have seized mobile phones of staffers during the search in the offices in Delhi and Mumbai.
BBC staffers were asked to keep their phones at a particular spot inside the premises and cooperate, officials said. Besides, some computers were seized and an unquantified number of mobile phones those in office were being cloned, officials said. According to I-T rules, transfer pricing “generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises. It refers to the value attached to transfers of goods, services and technology between related entities”.
It also refers to the value attached to transfers between un-related parties which are controlled by a common entity. As news spread, curious onlookers and media crews gathered outside the BBC office at central Delhi’s Kasturba Gandhi Marg. In Mumbai, the office is in the upscale Bandra Kurla Complex.
As part of a survey, the Income Tax department only covers the business premises of a company and does not raid residences and other locations of its promoters or directors.
On January 21, the government issued directions to block multiple YouTube videos and Twitter posts sharing links to the documentary. It is well known that Prime Minister Modi was upset and thoroughly unhappy on BBC raking up the Gujarat riots of 2002, when he was chief minister of Gujarat, were more than 1000s of people lost life in Hindu-Muslim riots.
IT survey triggers slugfest between BJP and Oppn
The Editors Guild of India said it was “deeply concerned” about the Income Tax surveys and termed it continuation of a trend of using government agencies to intimidate and harass media outlets critical of the ruling establishment. The BJP, in its reaction, accused the BBC of unleashing “venomous” reporting against India, and alleged that its propaganda and the Congress’ agenda go together.
A host of opposition leaders, including those from the Congress, the Left parties, the Aam Aadmi Party and the Shiv Sena, spoke on the issue. Congress President Mallikarjun Kharge said, “Time and again, there has been an assault on freedom of Press under the Modi government. This is done with brazen & unapologetic vengeance to strangulate remotely critical voices.” “No Democracy can survive if institutions are used to attack Opposition and Media. People will resist this,” he said in a tweet.
The CPI(M) hit out at the Centre over IT “raids” and questioned if India remains the “mother of democracy”. “First ban BBC documentaries. No JPC/ enquiry into Adani exposures. Now IT raids on BBC offices! India: ‘Mother of democracy’?” party general secretary Sitaram Yechury said in a tweet.
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Digging up questionable records and making a documentary on it after 20 years is journalistic freedom of expression but delving into the old financial records for possible wrong doings is persecution. The Great EDITORS GUILD OF INDIA was enjoying and celebrating the arrest of one of them without being DEEPLY CONCERNED or even acknowledging his release as a victory over the victimization / suppression. BBC obviously seems to be depending on the inputs from the sycophantic talent and support of the network of journalists / contributors, who are still unable to digest the depth of political capital of Modi Government. The strategy seems to be continue foul mouthing Modi and hope the administration will make a mistake serious enough to bring itself down. If release of the documentary before the IT survey was meant to be a pre-emptive strike in an attempt to blackmail the administration, then it has failed. The survey has gone through, what comes out remains to be seen.