Infosys, India's second largest software exporter, on Friday said payments amounting to R17.38 crore were suspended to Rajiv Bansal, former CFO of the company, pending certain clarifications with regard to such rights and obligations.
Infosys, India’s second largest software exporter, on Friday said payments amounting to R17.38 crore were suspended to Rajiv Bansal, former CFO of the company, pending certain clarifications with regard to such rights and obligations. “The suspension is not on account of any extraneous considerations,” the company said in a statement on Friday. However, the company did not explain in detail as to what sort of clarifications were sought. Bansal is currently Ola’s CFO.
In an effort to put an end to the controversy surrounding the suspension of severance package payment to Bansal, Infosys said it conducted two independent investigations into the matter and found no wrong-doing on the part of Bansal or the company. Infosys had signed a separation agreement with Bansal on October 11, 2015, which provided for extended non-compete obligations, besides other rights and obligations usual for such agreements. The agreement also explicitly enabled Bansal to report to the regulatory authorities in future any matter of impropriety that he became aware of that happened during his tenure.
In October 2015, the company launched an investigations related to rumours that Rajiv Bansal had made certain insinuations against the management. These were investigated by an independent law firm, which concluded that there was no substance to any of these rumoured insinuations. However, Rajiv has also denied on record that he had made any such insinuations, the release said.
Further, in August this year, another investigation was conducted by Cyril Amarchand Mangaldas, a law firm, ordered by the Audit Committee following an anonymous letter which alleged that the severance payment to Bansal was intended to silence him. The investigation revealed that the severance payment made to Bansal was not with the intention of silencing him from disclosing any impropriety. The agreement with Bansal allowed him to report to the regulatory authorities in future any matter of impropriety that he became aware of that happened during his tenure.
Further, necessary approvals had been obtained and appropriate disclosures were made in the matter. The investigation was based on extensive examination of records, emails and interviews with relevant people. Latham & Watkins, legal advisors to the Board supervised and coordinated the investigation. Latham & Watkins have confirmed the independence of Cyril Amarchand Mangaldas, the comprehensiveness of the investigation and the conclusions thereof. KPMG, the statutory auditors of the company, had conducted shadow proceedings on both investigations and have expressed satisfaction with the investigations and conclusions of the reports.