Amid a tax investigation, the BBC closes its newsroom in India and transfers its publication license to an employee-owned company
The BBC closed its newsroom in India less than a year after being questioned by income tax officials over suspected irregularities. It then gave up its publication license to a private limited company founded by its Indian staff. According to the Indian Express, this action represents a major breakthrough as it is the first time the public service broadcaster has formed an agreement of this kind on a worldwide basis.
Next Monday, activities will begin under the new moniker “Collective Newsroom,” which was established by four former BBC staffers. This private limited company’s India offices will be in charge of creating all Indian content for the BBC’s digital services in the following seven languages: Hindi, Gujarati, Marathi, Punjabi, Tamil, and Telugu.
BBC wants to acquire a 26% share in an Indian PVT Limited firm.
It is said that the BBC has applied to the Indian government to become a 26% shareholder in this private limited business.
According to Indian Express, Rupa Jha, the CEO of Collective Newsroom and a former senior news editor at BBC India, stated that the BBC has never before authorized another organization for publication. She also emphasized the organization’s dedication to upholding journalistic integrity with the full support of the BBC.
Operationalization of the BBC in India adjusts to new FDI rules
The reorganization of BBC’s activities in India was required by new Foreign Direct Investment (FDI) legislation that came into effect in 2020 and placed a 26% cap on FDI in India’s digital media industry. Formerly, the broadcaster with headquarters in the UK held the majority of BBC India. But when the investment ceiling was implemented, organizations that invested more than the 26% FDI maximum had to change their foreign investments to abide with the rules by October 2021.
The BBC’s biggest overseas operation outside of the UK is its India bureau, which employs around 200 people. But recent occurrences, such as income tax searches after a documentary about the Gujarat riots of 2002 aired and the introduction of new FDI regulations, forced a review of its activities in India.
