Amid speculations that its former CFO Rajiv Bansal was given a huge severance package to "silence" him from disclosing any impropriety, Infosys today said two separate, independent investigations did not reveal any "wrong-doings or efforts to cover up".
Bansal, who resigned in October last year, was promised a severance package amounting to 24 months' pay, totalling Rs 17.38 crore.
However, following certain insinuations/rumours and an anonymous letter regarding Bansal's separation, Infosys' Board/Audit Committee had proactively ordered two separate, independent investigations -- one in October, 2015 and the second in August this year.
The investigation looked into the circumstances that led to the severance agreement, and in particular, whether payment was being made to prevent Bansal from disclosing any impropriety.
"The investigations were conducted by Cyril Amarchand Mangaldas, a reputed law firm. Both investigations were shadowed by KPMG, the company's auditors, and revealed no wrong doings or efforts to cover up any wrong doings," Infosys said in a statement on its website.
Infosys said the severance agreement is being administered in accordance with the contractual rights and obligations.
"(However), certain payments to Rajiv under the agreement have been suspended pending certain clarifications with regard to such rights and obligations. The company wishes to clarify that the suspension is not on account of any extraneous considerations," it added.
It, however, did not disclose the reason for the suspension.
The 2015 investigation dispelled the rumours that Bansal had made certain insinuations against the management.
On the 2016 investigation, the Bengaluru-based company said Cyril Amarchand Mangaldas had concluded that "the severance payment made to Rajiv was not with the intention of silencing him from disclosing any impropriety".
Bansal's agreement allowed him to report any matter of impropriety that he became aware of during his tenure to the regulatory authorities in future.
"The investigation was based on extensive examination of records, emails and interviews with relevant people... KPMG had conducted shadow proceedings on both investigations and have expressed satisfaction with the investigations and conclusions of the reports," Infosys said.
Seeking to settle the dust over the issue, Infosys said its Board/Audit Committee has diligently discharged its fiduciary responsibilities on the subject.
"The Board does not wish the company to be unduly distracted any more in dealing with baseless and malicious rumours on this subject, and will therefore not make any further comments regarding this matter," it added.
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