INDIAN IT giant Infosys on Monday (4) said that it hasn’t obtained any evidence to prove the allegations in a whistleblower letter received last month.
The complaints are still under probe, and the company is not in a position to determine “concreteness, credibility and materiality of complaints,” Infosys said.
According to reports, the complaint by a group that calls itself "ethical employees" had alleged chief executive officer Salil Parekh and chief financial officer Nilanjan Roy were indulging in "unethical practices" to boost short-term revenue and profits.
The US Securities and Exchange Commission (SEC) began a probe into the claims, and its Indian counterpart, the Securities and Exchange Board of India (SEBI), asked the company to submit information on the complaints.
In a communication to India’s National Stock Exchange (NSE), Infosys said: “With respect to the anonymous complaints, there is no prima facie evidence that the company has received until date to corroborate any of the allegations made.”
Since the allegations were not deemed material, the company was not obligated to disclose them, Infosys said in response to the NSE’s query why it had not disclosed the anonymous letter it received.
The Bengaluru-based company’s chairman, Nandan Nilekani, said earlier that Parekh and Roy, who was also accused of wrongdoing in the letter, were recused from the board’s probe.
Former chief executive Vishal Sikka quit the company after a whistleblower complaint.
The committee began consultation with independent internal auditors EY and has retained law firm Shardul Amarchand Mangaldas & Co to conduct an independent investigation, Nilekani noted in his statement to the stock exchanges earlier.
Infosys last month had said the whistleblower's complaint has been placed before the audit committee as per the company's practice and that it would be dealt with according to the company’s policy.
Bobby Bawa