Karnataka HC directs Google India, executives to furnish 50% of FEMA penalties as bank guarantee
Bengaluru (PTI): The Karnataka High Court has directed Google India and three of its senior executives to deposit 50 per cent of the penalties imposed, for alleged Foreign Exchange Management Act (FEMA) violations, as bank guarantees.
The Enforcement Directorate (ED) had earlier levied a penalty of Rs 5 crore on Google India, along with a combined penalty of Rs 45 lakh on the three officials.
The case pertains to alleged violations of section 6(3)(d) of FEMA, involving transactions worth Rs 364 crore.
According to the ED, the violations relate to payments made by Google India to Google Ireland as distributor fees and for the acquisition of equipment from Google US.
The agency contended that Rs 363 crore, payable to Google Ireland, remained unpaid for over four years until May 2014, while payment for Rs 1 crore worth equipment sourced from Google US remained unsettled for more than seven years until January 2014.
The ED classified these as commercial loans, which would require prior approval from the Reserve Bank of India (RBI).
Google India, however, contested these allegations, asserting that the transactions in question were not foreign exchange borrowings.
The company emphasized that there were no loan agreements, deferred payments, or interest involved, and claimed adherence to an RBI circular issued on July 1, 2014.
Earlier, on January 11, 2019, the Appellate Tribunal for FEMA in Delhi had granted a stay on the penalties, citing that Google India's appeal appeared to have merit. The ED subsequently filed second appeals challenging the stay.
A division bench comprising Justices V Kameshwar Rao and S Rachaiah observed that the tribunal's stay was based only on a preliminary view.
They have now instructed Google India and the concerned officials to provide bank guarantees for half the total penalties within two weeks.
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BJP targets Siddaramaiah, as Pak media plays up his 'no need for war' comments
Bengaluru (PTI): The opposition BJP on Sunday slammed Karnataka Chief Minister Siddaramaiah, with Pakistan media playing up his "no need for war" comments over the Pahalgam terror attack.
Leader of Opposition in the Legislative Assembly R Ashoka accused Siddaramaiah of acting like a "puppet" of an enemy nation, at a time when the country is facing a very sensitive situation, with the threat of war looming over the border.
Siddaramaiah on Saturday had said there is no need for a war with Pakistan, but the central government should strengthen the security system.
"There is no need for war, stringent measures should be taken. The security system needs to be tightened. We are not in favour of war. There should be peace, people should have security, and the central government should take security measures...." he had said.
The terror attack in Pahalgam of Jammu and Kashmir on April 22 has left at least 26 persons dead, including two from Karnataka.
Addressing Siddaramaiah as "Pakistan Ratna", Ashoka chided him, saying, he has become world famous in Pakistan overnight due to your childish and absurd statements.
"Congratulations to you. If you ever visit Pakistan again, you are guaranteed royal hospitality. It will not be surprising if the Pakistani government honours you with the highest civilian award, the Nishan-e-Pakistan, as a great peace ambassador who has advocated for Pakistan," he said in a post on 'X', with a clipping of a Pakistani news channel playing up Siddaramaiah's statement.
The presence of people like Siddaramaiah in public life is the biggest tragedy of our country, Ashoka added.
Union Minister Pralhad Joshi said, the entire world is condemning the terrorist attack in Pahalgam, but it has become a habit for Congress leaders to talk lightly about the country without knowing the real situation.
"The entire world is offering condolences to India. Most countries are telling India to teach the terrorists a lesson in a way that they understand. Meanwhile, Chief Minister Siddaramaiah has made a statement that we should not punish those involved in terrorist activities but strengthen our security. This is condemnable," he said in a post on 'X'.
In-charge of BJP's National Information & Technology Department, Amit Malviya in his 'X' post said, "Congress rushes to Pakistan’s rescue. Karnataka Chief Minister Siddaramaiah, who owes his position to Muslim votes, is being quoted across Pakistan for suggesting that we focus on security measures in Kashmir instead of confronting Pakistan, despite them murdering Indian Hindus in cold blood."
