Bengaluru, Apr 15 (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.

Also Read | Poila Boishakh 2025 Wishes: PM Narendra Modi Extends Greetings to Bengalis on New Year Day, Says 'Shubho Nabo Barsho'.

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.

Also Read | Kolkata Fatafat Result Today: Kolkata FF Result for April 15, 2025 Declared, Check Winning Numbers and Result Chart of Satta Matka-Type Lottery Game.

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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)