Infosys asked to pay ex-CFO ₹12.18 cr in severance payout
: Infosys Ltd has lost an arbitration over severance package to its former chief financial officer (CFO) Rajiv Bansal and has been asked to pay outstanding amount of ₹12.17 crore, with interest, the firm said on Tuesday.
“The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr Rajiv Bansal,” Infosys said in a BSE filing.
As per the award, Infosys is required to pay Bansal the outstanding severance amount of ₹12.17 crore, with interest, it added.
“While the award acknowladvice edges that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of ₹5.2 crore and damages, has been rejected,” the filing said, adding that the arbitral award is confidential.
Infosys said it will take legal for further action on the issue.
The IT firm had agreed to pay Bansal a severance amount of ₹17.38 crore or 24 months of salary, but the company suspended payments after he got ₹5 crore as co-founder NR Narayana Murthy and others objected to the severance package as excessive.
Following this, Bansal had dragged his former employer to arbitration to claim the remaining ₹12 crore of his severance pay.
Bansal’s severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the Bengaluru-based firm.
When Bansal left Infosys in 2015, Infosys had agreed to pay him ₹17.38 crore in severance pay, equalling 24 months of pay.
NEW DELHI