Hailiya denied breaking the Human United Agreement and sending the God-Killers during the meeting of the Intergalactic United Nations but the evidence that the Federation provided was too solid. They had no way of escape. The Intergalactic United Nations were not stupid too. They knew who was in the wrong. Of course, another factor affecting this decision was that they were afraid of the Federation. Hence, when Caesar decided to remain silent on the matter, they promptly gave Hailiya their punishment.
Many countries in the Intergalactic United Nations were unhappy that the Federation used a god-class mecha but there was no rule restricting the movement of god-class mechas. Thus, they couldn't question the Federation about this. They were furious so they added new rules into the Human United Agreement to make sure that such a situation would never happen again.