Business Standard

I-T portal glitch: FM's reprimand of Infy reflects contractual weaknesses

As former finance secretary Sumit Bose pointed out, govt often does not set clear milestones. The penalties, too, are often most difficult to invoke owing to a 1987 SC ruling

Nirmala Sitharaman, Salil Parekh
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(Left) Finance Minister Nirmala Sitharaman and Infosys CEO Salil Parekh (right)

Subhomoy Bhattacharjee New Delhi
The public reprimand by a minister of a private contractor — in this case, the Bengaluru-based IT major Infosys — is unprecedented. Yet no one in the finance ministry is keen to explore alternatives such as a court case in the disp­ute with Infosys on the tech glit­ches on the website for income tax payers. It is too early, demurs one of those involved in the process; but it is also a fact that government departments do not have a great record in pursuing and winning such cases.

This is partly because tax cases in tribunals stretch for years and

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