The London-based regulator has fined licence holders of Peace TV Urdu GBP 200,000 and Peace TV GBP 100,000 for breaking its broadcasting rules.
The action taken against Dwivedi and others created a stir in the bureaucratic circles.
Zakir Naik's PR team said that he was approached by a representative of the Indian government in September, who offered him the said deal on Kashmir, which he refused.
India has been seeking extradition of Naik, a 53-year-old radical television preacher, who left India in 2016 and subsequently moved to Malaysia.
After a person is declared a 'fugitive economic offender', the prosecuting agency is vested with the power to confiscate all his assets and properties to recover the dues.