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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Hassan: Two young men die in two-wheeler head-on collision in Channarayapatna
Hassan: Two young men reportedly died in a head-on collision between a scooter and a bike near the Doderi guard gate in Channarayapatna taluk of the district on Tuesday.
The deceased have been identified as Ramesh (23) of Mattighatta village and Purushottam (26) of M. Honnenahalli village.
Ramesh and Kiran were riding a scooter when the bike driven by Purushottam, coming from the opposite direction, collided with them.
Ramesh is learnt to have succumbed to his injuries at the spot.
While the biker, Purushottam, was also seriously injured and died after failing to respond to treatment.
Kiran, who was on the scooter, sustained serious injuries and is undergoing treatment at Hassan District Hospital.
Hirisave police visited the site, registered a case, and are conducting further investigation.
