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    Whistleblower complaint placed before audit committee: Infosys

    Synopsis

    An anonymous group that calls itself "ethical employees" have alleged that the company is taking unethical steps to increase short-term revenue and profits. Infosys has received whistleblower complaints in the past too, over alleged governance lapses.

    Agencies
    Infosys has also settled with SEBI the case of alleged disclosure lapses regarding payment made to Bansal earlier this year. It paid Rs 34.34 lakh to the markets regulator to settle the case.
    India's second largest IT services firm Infosys on Monday said it has placed the whistleblower complaint -- which alleges that the company is taking unethical steps to increase short-term revenue and profits -- before its audit committee.

    "The whistleblower complaint has been placed before the audit committee as per the company's practice and will be dealt with in accordance with the company's whistleblowers policy," Infosys said in a statement.

    According to reports, an anonymous group that calls itself "ethical employees" have written to the Infosys Board as well as American regulator US Securities & Exchange Commission with the allegations. They have claimed that they have emails and voice recordings to substantiate the same.

    Infosys has received whistleblower complaints in the past too, over alleged governance lapses.

    Earlier, one such report had alleged wrongdoings by Infosys while buying Israeli automation technology firm Panaya. Infosys had said its internal audit committee, after investigation, had found no evidence supporting the allegations.

    In 2017, Infosys had witnessed a protracted stand-off between its high profile founders and the previous management over allegations of governance lapses and issues relating to severance package doled out to former executives, including ex-CFO Rajiv Bansal.

    Following the tussle, the then CEO Vishal Sikka quit followed by some board members. Infosys co-founder Nandan Nilekani was then brought in as Chairman to steer the company. Salil Parekh joined the company in January last year as the CEO.

    Infosys has also settled with SEBI the case of alleged disclosure lapses regarding payment made to Bansal earlier this year. It paid Rs 34.34 lakh to the markets regulator to settle the case.

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    5 Comments on this Story

    Suresh Kamath400 days ago
    These Whistleblowers have become a Body akin to USDA who keep these Sectors on their toes and see that such irregularity are minimal and such Body is eager to share their Observations and when such an AUGUST Body of INFOSYS Board Members exist surely these WOULD not be able to dent their Facade and ONLY try to have a dip in the CMP of INFOSYS to make a killing during the intervening period and GAIN for themselves and their SINISTER Groups Members
    krishnan tk401 days ago
    This is an auto reply, do not reply to this message. This is exactly what the response his. NR Narayan amurthy laid down the dictum:
    When in doubt, disclose. Not anymore. Nandan just presides over matters, and Board members, as in any other Company, just observe observe and observe till the end of meeting.
    Corporate structure with oversight only by MD/CEO will not do. Just because he gets big pay packet and has the only access to the Board who being what they are, he becomes authoritarian and looks to fill his pocket while wearing the good for the company tag.
    Mihir Kali Bhattacharya401 days ago
    Let’s watch the action of father of corporate governance , mr murthy
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