Hindustan Times (Lucknow)

GOVT MAY CHANGE AI SALE TERMS

- Maulik Vyas maulik.v@livemint.com

MUMBAI : Hindustan Unilever Ltd (HUL) has dragged three of its former employees to the Bombay high court for allegedly stealing data related to manufactur­ing of its products and other confidenti­al informatio­n.

India’s largest households goods has asked the court to restrainin­g the three former employees -- Suyash Chauhan, a former managing director of Unilever Nepal Ltd; Hemal Jain, a former head of customer developmen­t at HUL’s center of excellence and Kishor Patil, a former sales and customer manager -- from using the data.

On 27 March, the court allowed HUL to carry out an audit, to investigat­e the data theft, by EY and has directed the consulting firm to submit its report to the court within two weeks.

It also gave the respondent­s in the case three weeks to file their reply and restrained them from using or sharing the confidenti­al data. The court will next hear the matter on 17 April.

“I find from the record that not only have defendant Nos 2 (Jain) and 3 (Patil) obtained bill of material and other confidenti­al informatio­n, but have also disclosed and shared the same with Defendant No 1 (Chauhan) at a time when Defendant No 1 was no longer in employment with the Plaintiff and had no right or entitlemen­t to access such informatio­n,” observed Justice S.J. Kathawala in the 27 March order. He further said that any usage of or sharing the confidenti­al informatio­n is bound to cause irreparabl­e injury to the company.

Typically, bills of material contain critical data such as recipe, ingredient, quantity and other materials used to manufactur­e products.

HUL, which was represente­d in the court by Raj Panchmatia, a partner at the law firm Khaitan & Co, and senior counsel Birendra Saraf, argued that the stolen informatio­n was available to only select personnel of the company on a need- to-know basis.

The maker of products such as Surf Excel detergent powder and Dove soap has alleged that Chauhan and Jain have incorporat­ed two companies -- Destiny Endeavours Pvt. Ltd and D. Endeavours Fulfillmen­t Pvt. Ltd-- to serve brands through a wide and extensive wholesale and retail coverage.

On 27 March, the court directed the respondent­s to disclose all the details of confidenti­al and proprietar­y informatio­n that they may have in their possession either in physical or electronic form. It also asked the court receiver to take possession of all confidenti­al documents, personal laptops/external hard disks and other devices where such informatio­n could be stored.

A HUL spokespers­on confirmed these developmen­ts and said that the company has sacked two of these employees for breaching policies on informatio­n security.

“During the company’s internal investigat­ion, these employees were found to be sharing the company’s confidenti­al informatio­n with another ex-employee, who is also a party to the suit,” the spokespers­on said in an emailed statement.

An email query to Destiny Endeavours did not elicit any response. Senior counsel Kevic Setalvad, who is representi­ng the defendants, said that the investigat­ion report by EY has not come and declined to discuss anything further.

 ?? MINT/FILE ?? On March 27, the court allowed HUL to carry out an audit by EY to investigat­e the data theft and has directed the consulting firm to submit its report to the court within two weeks
MINT/FILE On March 27, the court allowed HUL to carry out an audit by EY to investigat­e the data theft and has directed the consulting firm to submit its report to the court within two weeks

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