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Updated: February 10, 2012 19:17 IST

Google issued foreign exchange violation notice

PTI
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The Enforcement Directorate is investigating whether Internet search giant Google violated norms laid down by the RBI with regard to transfer of funds abroad. File photo
AP
The Enforcement Directorate is investigating whether Internet search giant Google violated norms laid down by the RBI with regard to transfer of funds abroad. File photo

The Enforcement Directorate has issued a foreign exchange violation notice to Internet giant Google for alleged irregularities in transfer of funds to its foreign entities.

The ED has asked the Indian arm of the company to explain to it all the permissions the company has obtained from the Reserve Bank of India in this regard and its source of income in the country along with I-T returns filed earlier.

“We have an obligation to our shareholders to set up a tax efficient structure and our present structure is compliant with the tax rules in all the countries where we operate. We make a very substantial contribution to local and national taxation and provide employment for close to 2,000 people in India,” a Google spokesperson said when contacted for comments over the latest ED action.

The ED, according to sources, is investigating if the Internet search giant violated the norms laid down by the RBI with regard to transfer of funds abroad, including in Ireland and also receiving similar investments from foreign shores.

The agency has obtained relevant data in this regard from the RBI and would take up any possible penal action under the Foreign Exchange Management Act (FEMA) after going through the documents.

Google India, along with other social networking websites, is embroiled in a raging controversy over monitoring the content on Internet and of those websites depending on user-generated content, which arose after Union Telecommunications Minister Kapil Sibal had asked the sites to “screen” content.

The company also filed a compliance report in this regard in a Delhi court recently.

A Google spokesperson later said that they were “yet to receive the notice and thereby were unable to comment on the specific details.”

Google couldn't have been violating RBI norms for so long without
collusion of the appropriate officers in the Indian govt and executive.
Will that angle be investigated? Or will the Congress Bureau of
Investigation find no evidence of culpability as usual?

from:  Aritra Gupta
Posted on: Feb 11, 2012 at 12:39 IST

"and provide employment for close to 2,000 people in India": Beat it, and take 'em with ya! You stole the internet from the Rgveda anyway.

from:  Ashu
Posted on: Feb 11, 2012 at 11:04 IST

this is the only way left now for the govt.. use CBI for political rivals and the IT and ED for the others who do not follow the line...as shameless as it can get. and all this from the most educated in the govt.Hopefully, google has some good lawyers to show the govt its place..

from:  ajay
Posted on: Feb 11, 2012 at 00:52 IST

I find this entire exercise "objectionable", to use Sibbal's words. The netas find the web's content not conducive to their interests, and they attack the company on all fronts. The question isn't whether Google is guilty of financial irregularities. The question is how come the ED suddenly woke up to these irregularities just when Google was trying to fight its legal battle against govt-forced censorship?

from:  Aritra Gupta
Posted on: Feb 10, 2012 at 20:53 IST

Here it comes... First it was Anna's team that was harassed for bringing out the anti-corruption movement. Now, it is Google for protecting the right of expression. Had Google complied with the requests to remove all comments critical of the politicians and considered all comments against Ms.Gandhi blasphemous (as Mr.Sibal described), his party would care a damn even if Google is involved in financial irregularities...I would like to say Google is not Mr.Anna. Shutting down Google in India would hurt India more than Google itself, it would be well the current oppressive rulers considers this before going on with their harassment routines...

from:  Bharat
Posted on: Feb 10, 2012 at 19:27 IST
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