Left Menu
Development News Edition

Speculations of co-founders' role in whistleblower complaints appalling: Infosys


Speculations of co-founders' role in whistleblower complaints appalling: Infosys
Image Credit: PR Newswire

Infosys on Wednesday said speculations of co-founders and former employees being involved in the recent whistleblower allegations were "appalling" and seem to be aimed at tarnishing the image of some of "the most accomplished and respected individuals". Infosys - which is investigating whistleblower complaints that alleged unethical practices by the company's top management - condemned the "mischievous insinuations made by anonymous sources against the co-founders and former colleagues, suggesting their involvement in the recent whistleblower allegations".

"These speculations are appalling and seem to be aimed at tarnishing the image of some of the most accomplished and respected individuals. I have a deep regard for the life-long contribution of all our co-founders," Infosys Chairman Nandan Nilekani said in a statement. He added that the co-founders have served the company "selflessly" and remain committed to the long-term success of Infosys.

He pointed out that an external law firm is already conducting an independent investigation into the allegations, and said the outcome of the investigation will be shared with all stakeholders at the relevant time. Earlier this week, Infosys had said it is yet to receive any evidence to corroborate anonymous whistleblowers' complaints.

In October, Infosys had informed the stock exchanges of having received anonymous whistleblowers' complaints alleging certain unethical practices by the top management. Infosys Chairman Nandan Nilekani had said the whistleblower complaint dated September 20, as well as an updated complaint had been received by one of the board members on September 30.

In the letter, dated September 20, and signed by 'Ethical Employees', it was alleged that CEO Salil Parikh as well as Chief Financial Officer Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards. The complaints were placed before the audit committee on October 10, and to the company's non-executive board members on October 11, also the day when Infosys announced its second-quarter results.

US market regulator SEC has also initiated a probe on the matter, while Rosen Law Firm had said it was preparing a class action lawsuit to recover losses suffered by Infosys investors in the US. Back home, the Securities and Exchange Board of India (Sebi) had sought additional information from the company, while the National Financial Reporting Authority (NFRA) - part of the corporate affairs ministry - is looking into alleged accounting lapses at the firm.

In 2017, Infosys had witnessed a protracted stand-off between its high-profile founders and the previous management over allegations of corporate governance lapses and issues relating to severance package doled out to former executives, including ex-CFO Rajiv Bansal. Following the tussle, 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. Parekh joined the company in January last year as the CEO.

Infosys has also settled with Sebi the case of alleged disclosure lapses regarding a payment made to Bansal.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Videos

Latest News

UPDATE 1-U.S. Senate committee backs Russia energy bills, delays vote on sanctions 'from hell'

Underscoring U.S. lawmakers continuing unhappiness with Russia, a Senate committee on Wednesday advanced legislation seeking to hamper Russian energy pipelines and boosting NATO but delayed voting on a measure nicknamed the sanctions bill f...

Belichick shuts down queries into videotape controversy

New England Patriots head coach Bill Belichick on Wednesday shed very little light into the NFLs investigation of the organization for videotaping the Cincinnati Bengals sideline this past weekend. Belichick was rather curt with reporters, ...

Justice Dept chief Horowitz slams FBI for 'serious errors' in Russia probe

US Justice Departments Inspector General Michael Horowitz on Wednesday lashed out at Federal Bureau of Investigation FBI for basic, fundamental, and serious errors in its initial investigation into Russian influence in the 2016 presidential...

Honduras lawmakers urge president to shut down anti-corruption body

Honduran lawmakers allied with President Juan Orlando Hernandez have voted against renewing an agreement with the Organization of American States OAS to extend the mandate of an anti-corruption body.The Mission to Support the Fight against ...

Give Feedback