Infy’s Audit Panel Looks into Plaints
Bengaluru: Infosys said its audit committee was looking into the anonymous complaint sent to stock exchange regulators and media and had begun to take steps to investigate.
All complaints are placed before the audit committee under the company’s whistleblower policy, Infosys said in its filing to the stock exchange.
On Sunday, a complainant sent a letter to the regulators at the Securities and Exchange Board of India (Sebi) and the US Securities and Exchange Commission, alleging that the Panaya acquisition was overvalued and that it was possible that some Infosys executives had benefitted from the deal.
Infosys has denied the allegations made in the anonymous letter and stated that no member of the Infosys management team was involved in prior investments in Panaya.
The IT firm also said that insinua- tions, that people in the management team benefitted from the transaction, were misleading and slanderous. ET had reported that the acquisition of Panaya was at the heart of the company’s corporate governance troubles. Former CFO Rajiv Bansal, who received an outsize severance payment, was not in favour of the transaction, four sources had told ET.
Infosys has now been at the centre of a governance storm for over a month. Infosys founder Narayana Murthy said the severance payment to Bansal could have the appearance of ‘ hush money’. Infosys has categorically denied this and its board held a press conference last week to dispel doubts. But now, with the anonymous letters, the matters are unlikely to rest. ET has also reported that Sebi will seek responses from Infy on the letter.
IT co said insinuations, that people in management team benefitted from transaction, were misleading and slanderous