The Karnataka High Court directed Google India and its three senior executives to impose a 50% deposit on the fine for alleged violations of the Foreign Exchange Administration Act (FEMA), as violated by the bank’s guarantees.
Law Enforcement Bureau (ED) earlier ₹Google India’s 50 million ₹The three officials’ 4.5 million were.
The case involves transactions involving value in suspected violation of Article 6(3)(d) of FEMA ₹3.64 million.
According to the emergency room, these violations are related to Google India’s payment to Google Ireland, as a distributor fee and the acquisition of equipment from Google US.
The institution believes ₹363 million, should be paid to Google Ireland until May 2014, and the payment has not been paid for more than four years. ₹The 10 million devices purchased from Google’s U.S. lasted for more than seven years until January 2014.
ED classifies these as commercial loans, which requires prior approval from the Reserve Bank of India (RBI).
However, Google India has challenged the allegations and asserted that the transaction involved is not forex lending.
The company stressed that there was no loan agreement, deferred payment or interest involved and claimed compliance with the Reserve Bank of India circular issued on July 1, 2014.
Earlier, on January 11, 2019, the appeals court of Delhi FEMA sentenced the penalty, citing Google India’s appeals appear to have excellent wins. ED then filed a second appeal, challenging the stay.
The judge, composed of Justice v. Kameshwar Rao and S Rachaiah, noted that the court’s stay was based solely on preliminary views.
They are now instructing Google India and relevant officials to provide bank guarantees for half of the total fines in two weeks
