All entities operating in India must comply with local laws: Jaishankar’s curt reply to UK minister on BBC tax issue

Indian I-T sleuths uncovered many irregularities in BBC’s accounting books during a 3-day survey at its New Delhi and Mumbai offices last month.

India

oi-Deepika S

During
the
bilateral
talks
with
External
Affairs
Minister
S.
Jaishankar
in
Delhi,
British
Foreign
Minister
James
Cleverly
raised
the
issue
of
the
survey
at
the
offices
of
British
Broadcasting
Corporation
(BBC)
in
New
Delhi
and
Mumbai
by
the
Income
Tax
Department.
In
a
retort,
Jaishankar
firmly
told
the
UK
minister
that
all
entities
operating
in
India
must
comply
fully
with
relevant
laws
and
regulations.

Last
month,
the
Income
Tax
Department
uncovered
irregularities
in
the
accounting
books
of
the
BBC
following
a
three-day
survey
at
its
premises
in
Mumbai
and
Delhi.
The
survey
came
weeks
after
the
BBC
ran
a
propaganda
docuseries
that
was
critical
of
Prime
Minister
Narendra
Modi’s
leadership
of
Gujarat
during
the
post-Godhra
carnage
riots
in
2002.

The
survey
has
thrown
up
discrepancies
with
regard
to
Transfer
Pricing
documentation,
Asset
and
Risk
analysis,
incorrect
use
of
comparables
applicable
to
determine
correct
Arms
Length
Price
and
inadequate
revenue
apportionment.
The
operation
has
resulted
in
the
unearthing
of
crucial
evidence
by
way
of
statements
from
BBC
employees
and
digital
records.

UK
govt
opposes
survey
at
BBC

However,
the
UK
government
strongly
defended
the
BBC
and
expressed
concern
regarding
the
I-T
surveys
conducted
on
the
media
giant,
during
a
session
in
the
country’s
Parliament.
“We
stand
up
for
the
BBC.
We
fund
the
BBC.
We
think
the
BBC
World
Service
is
vital.
We
want
the
BBC
to
have
that
editorial
freedom,”
said
David
Rutley,
Parliamentary
Under-Secretary
for
the
Foreign,
Commonwealth
and
Development
Office.

“It
criticises
us
(government),
it
criticises
the
(Opposition)
Labour
party,
and
it
has
that
freedom
that
we
believe
is
so
important.
That
freedom
is
key,
and
we
want
to
be
able
to
communicate
its
importance
to
our
friends
across
the
world,
including
the
Government
in
India,”
he
said.

BBC’s
docuseries
on
PM
Modi

The
BBC,
which
has
all
along
attempted
to
isolate
Hindus
by
selectively
reporting
crimes
by
and
against
Hindus,
came
up
with
a
two-part
series
that
discusses
PM
Modi’s
role
in
the
post-Godhra
carnage
riots
in
Gujarat
in
2002.
Opposition
parties,
particularly
the
Congress-Left-liberal
cabal,
used
the
opportunity
to
target
and
viciously
attack
Narendra
Modi
wherever
he
went.

In
an
exclusive
interview
last
week,
Jaishankar
termed
the
BBC
series
as
“politics
by
another
means”.
“Sometimes
politics
of
India
doesn’t
even
originate
in
its
borders,
it
comes
from
outside.
We
are
not
debating
just
a
documentary
or
a
speech
that
somebody
gave
in
a
European
city
or
a
newspaper
edit
somewhere.
We
are
debating,
actually,
politics,
which
is
being
conducted
ostensibly
by
the
media.
There
is
a
phrase
‘war
by
other
means’…
this
is
politics
by
another
means.
I
mean
you
will
do
a
hatchet
job…
and
say
this
is
just
another
quest
for
truth
which
we
decided
after
20
years,
to
put
at
this
time,”
he
said.

The
External
Affairs
Minister
also
questioned
the
timing
of
the
series
as
India
is
prepping
up
for
the
2024
Lok
Sabha
elections.
“I
mean,
come
on,
you
think
the
timing
is
accidental?
Let
me
tell
you
one
thing
–
I
don’t
know
if
the
election
season
has
started
in
India,
Delhi,
or
not.
But
for
sure,
it
has
started
in
London,
New
York,”
he
added.