Skip to content
Search

Latest Stories

US federal investigation launched against Infosys

THE US Securities and Exchange Commission is investigating Indian IT giant Infosys after whistleblowers alleged its top executives acted unethically to inflate revenues, the firm said Thursday (24).

"The company will cooperate with the Securities and Exchange Commission's (SEC) investigations," Infosys said in a statement, which came days after the firm announced its own probe into the claims.


The Bangalore-headquartered company lost over $7 billion from its market value in a 24-hour period earlier this week following the allegations made in a letter signed "ethical employees" and sent to the Mumbai and New York stock exchanges.

The letter, widely reprinted in Indian media, accuses top executives at Infosys of concealing information from auditors.

"Several billion-dollar deals of last few quarters have nil margin," the complaint said.

It said company chief executive officer (CEO) Salil Parekh and chief financial officer Nilanjan Roy had also asked executives to not fully disclose US visa costs in a bid to boost short-term profits, according to media reports.

Infosys also said Thursday that a class-action lawsuit had been filed against the company in a US court by an American law firm representing the IT outsourcing giant's shareholders.

"The company intends to defend itself vigorously," it said.

Infosys earns more than 60 per cent of annual revenues of around $12bn from the US.

Indian IT outsourcing firms have struggled in recent years after US President Donald Trump threatened to cap H-1B visas, largely issued to IT professionals from the South Asian nation.

The resulting pressure and allegations of anti-American bias in hiring forced the firms to employ more local staffers for their US operations.

In the July-September quarter, Infosys raised its forecast for earnings growth from 8.5-10 per cent to 9-10 per cent in dollar terms for the current fiscal year.

In 2017, the company's founders locked horns with its former management over alleged corporate governance lapses and payment packages for top executives including then-chief Vishal Sikka.

Sikka and some board members resigned following the row. Parekh was brought in as the chief in January 2018.

(AFP)

More For You

JLR-Tata-Getty

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility. (Photo: Getty Images)

JLR halts plan to build EVs at Tata’s India plant: Report

JAGUAR LAND ROVER (JLR) has put on hold plans to manufacture electric vehicles at Tata Motors’ upcoming £775 million factory in southern India, according to a news report.

The decision was influenced by challenges in balancing price and quality for locally sourced EV components, three of the sources said. They added that slowing demand for electric vehicles was also a factor.

Keep ReadingShow less
budget friendly spring destinations

Lock in affordable trips and avoid inflated prices

iStock

Top 7 budget-friendly spring destinations for 2025

With spring break just around the corner, it's time to lock in affordable trips and avoid inflated prices. Booking three weeks to a month in advance can help secure the best deals. Spring 2025 is shaping up to be a great time for travel, with airfares for international trips down by 3% and hotel rates decreasing by 2%, making it easier than ever to plan a memorable trip without breaking the bank. Here are seven top destinations to explore on a budget this spring.

1. Big Bear, California

Big Bear Lake, CaliforniaiStock

Keep ReadingShow less
Leicester drug supplier Sarju Khushal jailed for 11 years over £2m operation

Sarju Khushal

Leicester drug supplier Sarju Khushal jailed for 11 years over £2m operation

A MAN who supplied controlled drugs on a ‘wholesale’ scale across Leicestershire has been sentenced to 11 years in prison. Sarju Khushal, 30, was arrested in 2022 after investigations revealed he had been transporting drugs from Lancashire into the area.

Khushal, formerly of Hazeldene Road, Leicester, pleaded guilty to several charges, including the supply and conspiracy to supply class A drugs. He was sentenced at Leicester crown court last Thursday (6).

Keep ReadingShow less
Tamil Nadu Education

Tamil, one of the oldest living languages in the world, is a source of pride for the state’s people

Getty images

Education or imposition? Tamil Nadu battles India government over Hindi in schools

A war of words has erupted between Tamil Nadu’s Chief Minister MK Stalin and the federal government over the National Education Policy (NEP) 2020, which recommends a three-language formula in schools, with two of the three being native to India. Stalin has voiced strong objections, claiming that the policy could lead to the imposition of Hindi, a northern Indian language, in non-Hindi-speaking states like Tamil Nadu. The issue has reignited old tensions between southern states and the central government over the privileging of Hindi.

Historical resistance to Hindi

Tamil Nadu has a deep-rooted history of opposing the promotion of Hindi, dating back to the 1960s. Protests broke out in the state when the federal government attempted to make Hindi the sole official language, leading to a compromise that allowed the continued use of English. Language in Tamil Nadu is not merely a means of communication but a powerful symbol of cultural identity. Tamil, one of the oldest living languages in the world, is a source of pride for the state’s people. As a result, any perceived threat to its prominence is met with strong resistance.

Keep ReadingShow less