New Delhi: Media conglomerate Bennett Coleman Company Limited (BCCL), the publisher which runs the Times Group is facing investigation by the Enforcement Directorate (ED), according to a report by the Indian Express.

According to the newspaper, top executives of the group have faced multiple rounds of questioning by the investigative agency, which is also thought to be investigating the BCCL’s dealings with subsidiaries incorporated in foreign countries, including tax haven, the British Virgin Islands.

One of the largest media conglomerates in the country, the BCCL runs news brands across various media, including newspapers, such as the Times of India; TV channels, such as Times Now; and digital and radio brands as well.

The Express report notes that top executives of the company, such as CFO Himanshu Agarwal and chairman of the executive committee, Sivakumar Sundaram, have been asked to appear before the ED at the agency’s headquarters in New Delhi for questioning.

The inquiries are being conducted under allegations of violations of the Foreign Exchange Management Act (FEMA). Transactions worth Rs 900 crore with entities in the British Virgin Islands are reportedly being investigated.

However, the group is currently not facing any charges under the Prevention of Money Laundering Act (PMLA), thought to be a more stringent legislation. 

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The BCCL balance sheet reportedly shows MX Media Company Limited as being one of its subsidiaries. MX Media is incorporated in the British Virgin Islands.

While this company was shown as being a subsidiary of the BCCL in FYs 2017-18 and 2018-19, with the BCCL owning a majority stake in it, the conglomerate’s equity in the same was subsequently diluted and MX Media was listed as an ‘associate’ in FY 2019-20 and 2020-21.

The ED has reportedly sent formal requests overseas to corroborate information, however, the specifics of the information sought are not yet known.

Apart from this, the BCCL’s balance sheet also contains ‘associates’ incorporated in other countries, such as China, South Korea and Singapore.

The Express report also cites data from the Registrar of Companies to show that the BCCL’s revenue was been dwindling since the onset of the pandemic. In 2018-19, the company registered a profit of Rs 484 crore and the next year, 2019-20, its total revenue from operations stood at Rs 9,611 crores. 

However, from the first pandemic year, 2020-21, revenue fell to Rs 5,337 crore and losses went from Rs 451 crore in 2019-20 to Rs 997 in 2020-21.

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