"This may take the form of monetary penalty or a requirement that they hand over livestock," Justice Graham Lang noted in his written decision, which was released last week.
"[The defendant's mother] also says it is probable that they will be evicted from their home and that other villagers will attack the family and set fire to their house.
"She is concerned that she and her husband will be told to leave the village and never return."
The defendant's mother said she had no doubt news would travel from Auckland to the village within hours if name suppression was to be lifted due to the "village grapevine" and diaspora of others to New Zealand.
The stigma of such an allegation is so severe that social consequences could also extend to other members of the man's family living in New Zealand and to his wife's family overseas, an expert witness said.
Justice Lang agreed the village punishment, if carried out, would amount to "extreme hardship" for the parents.
"Such consequences would plainly fall well outside those that would normally follow publication of the fact that a person has been charged with criminal offending," he wrote.
Crown prosecutor Chris Howard opposed continued name suppression. The defence provided no examples of a village chief meting out punishment for something that happened overseas, he said, adding that the defendant hasn't lived in the village in years.
Justice Lang said prosecutors could raise the issue again if it finds material suggesting the evidence from the defence witness was unreliable. But in the meantime, name suppression will remain, he said.