Karnataka HC asks Google India to secure half of FEMA penalty
In a significant development, the Karnataka High Court has instructed Google India and three of its senior executives to furnish bank guarantees amounting to 50% of the total fine imposed on them for alleged breaches under the Foreign Exchange Management Act (FEMA). The Enforcement Directorate (ED) had earlier slapped a fine of ₹5 crore on Google India.
The court’s order came in response to a petition filed by Google India, which had challenged the ED’s decision to impose the fine. The company had argued that the fine was excessive and without any merit.
However, the Karnataka High Court did not buy Google’s argument, and instead, ordered the company to secure half of the fine amount by furnishing bank guarantees. The court also directed Google India’s senior executives, including its India head, to personally guarantee the fine amount.
The ED had slapped the fine on Google India for alleged breaches of FEMA regulations. The ED had accused Google India of violating the provisions of FEMA by not disclosing the details of its foreign transactions. The ED had also accused the company of not obtaining necessary approvals for its foreign transactions.
The ED’s investigation had revealed that Google India had made several foreign transactions without obtaining the necessary approvals. The company had also failed to disclose the details of these transactions, which is a violation of FEMA regulations.
The ED had also accused Google India’s senior executives of being aware of the company’s alleged violations of FEMA regulations, but had failed to take necessary action to prevent them.
Google India had argued that the fine was excessive and without any merit, and had requested the court to stay the fine. However, the court rejected the company’s request and ordered it to secure half of the fine amount by furnishing bank guarantees.
The court’s order is a significant blow to Google India, which had been trying to avoid the fine. The company had argued that the fine was excessive and had requested the court to reduce it. However, the court’s order suggests that Google India will have to pay the fine in full, although it will have some time to pay it.
The court’s order is also a warning to other companies that violate FEMA regulations. The ED had taken action against Google India for alleged breaches of FEMA regulations, and the court’s order suggests that the ED will take action against other companies that violate the same regulations.
The ED’s investigation into Google India’s alleged breaches of FEMA regulations had begun several years ago. The ED had received several complaints against Google India for allegedly violating FEMA regulations, and had launched an investigation into the matter.
The ED had found that Google India had made several foreign transactions without obtaining the necessary approvals. The company had also failed to disclose the details of these transactions, which is a violation of FEMA regulations.
The ED had also accused Google India’s senior executives of being aware of the company’s alleged violations of FEMA regulations, but had failed to take necessary action to prevent them.
Google India had argued that the ED’s investigation was flawed and had requested the court to quash the fine. However, the court rejected the company’s request and ordered it to secure half of the fine amount by furnishing bank guarantees.
The court’s order is a significant development in the case, and suggests that Google India will have to pay the fine in full. The company had argued that the fine was excessive and had requested the court to reduce it. However, the court’s order suggests that Google India will have to pay the full amount of the fine.
In conclusion, the Karnataka High Court’s order asking Google India to secure half of the FEMA penalty is a significant development in the case. The court’s order suggests that Google India will have to pay the fine in full, although it will have some time to pay it. The court’s order is also a warning to other companies that violate FEMA regulations.
