In its statement, released two days after the controversy broke, the publisher added that it has a moral responsibility to protect its "employees against threats and harassment".
The settlement reached this week (with the petitioners who objected to the contents of the book saying it hurt the sentiments of Hindus), "brings to a close a four year legal process in which Penguin defended the publication" of the Indian edition of the book.
"We have published, in succession, hardcover, paperback and e-book editions of the title.
"International editions of the book remain available physically and digitally to Indian readers who still wish to purchase it," the publisher added.
"We stand by our original decision to publish the book, just as we stand by the decision to publish other books that we know may cause offence to some segments of our readership.
"We believe, however, that the Indian Penal Code, and in particular Section 295A, will make it increasingly difficult for any Indian publisher to uphold international standards of free expression without deliberately placing itself outside the law," the publisher said.
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