Infosys probe likely to be over by January

Representative image. (Reuters Photo)

The probe into the whistleblower's allegations against the Infosys management is likely to be completed by early January.

According to multiple sources in the know, the probe report will be made public during the announcement of the company's third-quarter financial results during the second week of January.

"The probe will take some more time. It is likely to be over by the end of December or beginning of January," a highly-placed source told DH.

The independent investigators appointed by the IT major -- Shardul Amarchand Mangaldas -- are investigating two letters posted by the whistleblowers, targeting the company's CEO Salil Parekh. 

The letter titled “Disturbing unethical practices” alleged financial impropriety in the company's books by Parekh along with CFO Nilanjan Roy. The letter also alleged racist and misogynist comments by Parekh against the members of the board.

The US-market regulator Securities and Exchange Commission and Indian-markets regulators are also investigating the allegation against the company's CEO, and are also coordinating with each other.

The second letter, which was undated, has alleged that Parekh has been violating his employment contract and has been operating out of Mumbai, and not Bengaluru -- as stipulated in his employment contract. The letter also alleged that the CEO had misused the funds of the company in an alleged bid to get his children admitted to top universities in the US.

This is not the first time that a whistleblower letter has rocked one of India's most high profile companies. In 2017, a whistleblower had alleged impropriety in the acquisition of Israeli firm Panaya by the then CEO Vishal Sikka. This had led to a long battle between the company's promoter group led by NR Narayana Murthy and culminated in the unceremonious exit of Sikka in August 2017. However, the independent auditors had given a clean chit to the deal in a report that the company decided not to make public -- much to the disappointment of Murthy.

Investors want Nilekani 

Meanwhile, the domestic institutional investors (DIIs), who were instrumental in bringing back the company's co-founder Nandan Nilekani back as the Chairman of the company, want him to speak more and clear the air over the issue. "Right now Nandan is the only person we are going to trust in the company. He should be speaking more often about the issue. We will be taking him for his word, not anyone else," one of the top executives of an investment company said.

 

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