Account Blocked

I would expect so, because they say that the clicks they pay for are legit clicks, therefore they paid for a illegal-click, they said they won't charge for them, so they'll get a small refund, it's probably just a few more cents in their adwords account.

I'd suggest you move on now, don't hang around with Google, there are many other companies as well, you should consider finding clients who will pay you a weekly/monthly/yearly fee for you to display adverts for their website.

 

Well that may be the problem.
India is a new market, and is in it's infancy online, much the same way the U.S. was in the 90's.
Thee is no question that there is a lot of click fraud coming out of India...has been for years.
Why would Google bend over backward to accommodate anyone, when they don't have an office there, and webmasters are willing to turn the other way when they see click fraud happening.

You are only making it worse for yourself. I hear Indian webmasters complaining all the time about how they are treated unfairly by certain programs, but you have a serious problem in your country with defrauding affiliate programs online. It's an industry all of it's own.

So if you are not willing to police your own community, and turn a blind eye to known criminals, then you are allowing the problem to continue, so why would anyone take the chance?
If that is the common feeling over there "I'm not turning in a fellow Indian" and "Screw Google", then make your own search engine and create your own version of adsense and you can police your own click fraud industry.

No one has an obligation to do business anywhere they don't want to. It's not a right. You are dealing with privately owned companies and if the fraud over all is too much, I would pull out too.

Until you get a handle on the fraud over there, and start policing and honoring criminal statutes, and prosecutions, you will always see a certain amount of skepticism from companies outside of your country.

That is the reality of business in the real world.

 

you can still file an appeal to google so try to get your account back, just explain it to them why your getting those invalid clicks and maybe they might consider you

 

I already appealed Google for reactivation but still no reply, as in their auto reply they committed to reply with in 48hrs but 5 days past no reply.

I have moved on to Adbrite.