Active Stocks
Wed Dec 06 2023 14:23:42
  1. Tata Steel share price
  2. 132.15 0.42%
  1. State Bank Of India share price
  2. 608.4 0%
  1. Power Grid Corporation Of India share price
  2. 223.3 0.4%
  1. Tata Motors share price
  2. 714.55 0.88%
  1. NTPC share price
  2. 281.3 -1.47%
Business News/ Companies / News/  Infosys CEO hit by more charges in second whistleblower letter
Back Back

Infosys CEO hit by more charges in second whistleblower letter

When the first letter became public on 22 Oct, shares of Infosys tumbled about 16% to close at ₹643.55 on BSE
  • The whistleblower has accused Salil Parekh of eroding the value systems of the company
  • Salil Parekh, chief executive officer of Infosys (Photo: Bloomberg) (Bloomberg)Premium
    Salil Parekh, chief executive officer of Infosys (Photo: Bloomberg) (Bloomberg)

    Bengaluru: Infosys Ltd has received a second whistleblower complaint accusing chief executive Salil Parekh of misdemeanours, days after a similar letter prompted the company’s board to institute an independent probe.

    The second whistleblower urged the chairman and directors to act against Parekh.

    “Though it is a year and eight months since Parekh joined the company, he operates from Mumbai in violation of the condition that the CEO has to be based in Bengaluru. What is stopping the board to insist on his movement to Bengaluru," said the whistleblower in the unsigned letter to Infosys chairman and co-founder Nandan Nilekani and independent directors.

    Claiming to be an employee in the $11-billion company’s finance department, the whistleblower said he was unable to disclose his identity fearing retaliation for the damning disclosures he was making against Parekh. “I am an employee working in the finance department. I am submitting this whistleblower complaint as the matter is so volatile that I fear retaliation if I disclose my identity. Please excuse me for the same, but the matter is of grave importance."

    As an employee and a shareholder, the whistleblower said it was his duty to bring to the notice of the chairman and the board a few facts that were eroding the value systems of the company.

    Accusing Parekh of visiting Bengaluru from Mumbai at least twice a month, the employee said: “As all our employees are paying for their transport from their homes to office and back, expecting the same from the CEO is not wrong. Please initiate actions to recover this money from Salil Parekh immediately."

    When the first letter became public on 22 October, shares of Infosys tumbled about 16% to close at 643.55 on the BSE.

    Since then, the stock has recovered 9.5%, while the Sensex gained 3.54%. The markets are closed on Tuesday on account of Guru Nanak Jayanti.

    However, the second letter, a copy of which was reviewed by Mint, may not be new.

    It could be the one of the “undated letters" that Infosys had referred to earlier. In a statement on 22 October, Nilekani had acknowledged that a board member had received two anonymous complaints on 30 September—one dated 20 September titled “Disturbing unethical practices", and the second undated “Whistleblower Complaint".

    When contacted, an Infosys spokesperson said the company has “nothing more to share at this point in time".

    Infosys co-founder N.R. Narayana Murthy declined to comment on the ongoing issues of corporate governance in the company. Such questions should be raised with Infosys, he told Mint on the sidelines of a book launch event at the company’s Electronic City headquarters in Bengaluru. Murthy and family still hold about 3.54% stake in Infosys out of the total promoter and promoter group holding of 13.15%.

    Milestone Alert!
    Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 12 Nov 2019, 12:33 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App