BBC Navigates Regulatory Changes In India, Launches New Company For Indian Languages

To comply with evolving foreign investment regulations in India, the British Broadcasting Corporation (BBC) announced on Tuesday the formation of a new company, 'Collective Newsroom,' dedicated to Indian language services. This development follows allegations of foreign exchange violations against the BBC by Indian authorities, triggering an investigation that started after tax authorities conducted searches at the broadcaster's offices in Delhi and Mumbai in February.

The regulatory spotlight intensified after the BBC aired a critical documentary on Prime Minister Narendra Modi in January, delving into his leadership during the deadly communal riots of 2002. The documentary, titled "India: The Modi Question," prompted a strong reaction from the government, which dismissed it as 'propaganda' and blocked its dissemination on social media platforms.

Jonathan Munro, the BBC's deputy CEO, addressed the staff in an email, stating that four members, including the current India head Rupa Jha, would be leaving the organization to establish the new venture. "The regulations that govern publishing the news in India have changed," Munro explained, emphasizing that any company disseminating digital news content in India must now be majority-owned by Indian nationals.

The new entity, Collective Newsroom, will be fully owned by its nine Indian shareholders, including the departing BBC staff members. Approximately 250 BBC employees will be asked to transition to the new company, ensuring compliance with the revised regulations.

The BBC did not immediately respond to Reuters' request for comment on Munro's email.

In February, an Indian government adviser clarified that the tax searches at the BBC's offices were not driven by vindictiveness. The BBC, in response, expressed its full cooperation with tax authorities, expressing the hope for a swift resolution to the matter.

The BBC refrained from airing its two-part documentary in India, where it scrutinized Modi's leadership during the 2002 riots, resulting in the death of over 1,000 people, predominantly Muslims. Activists claim a higher toll. The government's dismissal of the documentary as "propaganda" led to the blocking of its sharing on social media. The BBC, however, stood firm, asserting that the documentary was "rigorously researched according to the highest editorial standards."

Prime Minister Narendra Modi, who is seeking a third term in the upcoming elections, has consistently denied allegations that he failed to intervene effectively during the 2002 riots. He was exonerated in 2012 following a Supreme Court-supervised inquiry, and a petition questioning his exoneration was dismissed last year.