October 30, 2019

Ministry Of Company Affairs Asks For Information About Whistleblower Allegations Made Against Infosys Top Brass

[ By Bobby Anthony ]


The Ministry of Corporate Affairs (MCA) has sought information from Infosys about whistleblower complaint allegations made against the company’s top management to the United States stock market regulator Securities and Exchange Commission (SEC).

The ministry is also keeping a close watch on unfolding developments as per its standard operating procedure and details have been sought from the Bengaluru-based company which is listed on stock exchanges in both India as well as the Unites States.

It may be recalled that the SEC has already initiated investigations against the top brass of Infosys after it received a whistleblowers’ complaint which alleged unethical accounting practices by the company’s CEO and CFO.

Earlier, Infosys mentioned in a statement that the company is in touch with the SEC regarding the anonymous whistleblower complains and learnt that it has initiated a probe in the matter, adding that it will co-operate with the SEC’s investigation.

The Infosys statement had also stated that it was “aware of a securities class action lawsuit” in the US, based on the complaint, which it stated, “the company intends to defend itself vigorously in such a lawsuit”.

Infosys chairman Nandan Nilekani has also stated that a whistleblower complaint dated September 20 and an undated one have been received by a board member on September 30.

These have been placed before the audit committee on October 10 and the company's non-executive board members on October 11, he had said. Infosys announced its second-quarter results on October 11.

Nilekani had also mentioned that the audit committee has retained law firm Shardul Amarchand Mangaldas & Company to conduct an independent investigation into the issue.

Additionally, India’s capital market regulator the Securities and Exchange Board of India (SEBI) has also sought information from the company about the complaint.

Previously, the US-based Rosen Law Firm had stated it is in the process of preparing a class action lawsuit to recover losses suffered by Infosys investors in the United States.

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