New Delhi: In what could become a major setback for IT major Infosys, a group of employees have accused its CEO Salil Parekh and CFO Nilanjan Roy of unethical practices. These practices range from pulling the strings to project profits and hiding critical information to casually call other board members as ‘Madrasis’, ‘Diva’ etc.
soon after the complaints surfaced, Infosys shares plummeted 16 per cent to Rs 645.35 on the BSE. On the NSE, it tanked 15.99 per cent to Rs 645.
“The CEO told us, no one in the board understands these things, they are happy as long as the share price is up. Those two Madrasis and Diva make silly points, you just nod and ignore them,” read the statement of the group of whistleblowers, who identified themselves as ‘ethical employees’.
The ‘Madrasis’ here are D Sundaram and DN Prahlad, two independent directors of Infosys. The ‘diva’, as revealed by the letter, refers to Kiran Mazumdar-Shaw, the lead independent director of Infosys.
The whistleblowers’ group has claimed that they have voice recording and other evidence of whatever they claimed in the letter.
“CEO spends two-and-half days in a week in Ecity and rest in Mumbai. All his travel expenses are paid by the company, for these weekly personal trips. He is a green card holder and avoids deduction of taxes during his US travel which is non-compliance. Please check and details will be provided,” the letter said.
Infosys chairman Nandan Nilekani has issued a statement. “These Complaints are being dealt with in an objective manner. The undated whistleblower complaint largely deals with allegations relating to the CEO’s international travel to the US and Mumbai…Because the investigation is ongoing, there will be no further comment so that investigation may be conducted in a thorough and objective manner. At the appropriate time, we will provide a summary of the investigation results. The Board is committed to uphold the highest standard of corporate governance and protect the interests of all stakeholders,” he said.
(With Agency Inputs)