HC asks Google to deposit 50% of penalty by ED in FEMA case

The Karnataka high court has directed Google India and three of its senior executives to deposit 50% of the over ₹5 crore penalty imposed on them by the Enforcement Directorate (ED) for alleged violations under the Foreign Exchange Management Act (FEMA).

- Ayesha Arvind

BENGALURU:

In an order passed last month, justices V Kameswar Rao and S Rachaia directed Google and its officials to deposit the money as bank guarantee while allowing a petition filed by ED.

ED approached the court earlier this year claiming that between 2007 and 2010, Google India entered into an agreement with Google Ireland and Google US, agreeing to pay them over ₹364 crore towards distributor fees and equipment acquisition, respectively. It however, failed to pay such amount within the six-month period as per the agreement, ED told the court.