Indian government investigating Google and Yahoo over violations of foreign exchange laws

The Government of India (Gol) has reportedly authorised an investigation, to look into the alleged violation of forex (foreign exchange) laws by the US based Internet outfits of Yahoo and Google, in Indian.

According to a Wall Street Journal report, notices have been already served to the Indian units of both the Internet giants, where inputs have been taken from an unnamed senior official in GoI's federal finance ministry.

On being approached for further details, a spokesperson from the finance ministry declined to clarify whether or not notices had been sent to the companies.

"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," a Google India spokeswoman confirmed, as reported by Reuters.

The spokeswoman has claimed that the company was yet to receive a notice from GoI on the issue.

This new development will certainly act as an insult to injury for both the firms - Google in particular. Only recently, both Google and Yahoo, alongside a handful of other Internet companies, were dragged through an Indian court for not taking appropriate measures to block religiously sensitive content on their respective sites.