Some payments, however, has been suspended.
Indian technology major Infosys on Friday issued a statement to clarify that the company has nothing to hide in suspending Rupees 17.38 crore severance to its former CFO Rajiv Bansal, reported The Times of India.
Infosys said in the statement that certain payments to Bansal have been suspended pending certain clarification regarding the contractual rights and obligations of Bansal as per his severance agreement.
“The severance agreement is being administered in accordance with the contractual rights and obligations. Certain payments to Rajiv under the agreement have been suspended pending certain clarifications with regard to such rights and obligations,” read the statement.
The company has been facing allegations following the separation of Bansal in October last year, including the severance pay to him was for staying silent on some wrongdoings that occurred during his tenure.
Infosys signed a separation agreement with Bansal in October last year that ‘explicitly enabled Rajiv to report to the regulatory authorities in future any matter of impropriety that he became aware of that happened during his tenure.’
Clarifying rumors surrounding the issue, Infosys said, “The Company has made the necessary statutory filings and disclosures in the matter. Further, the Chairman Mr. R. Seshasayee made a statement at the Company’s Annual General Meeting on June 18, 2016, explaining the rationale for the severance quantum and assuring the shareholders that there was no impropriety of any nature.”
Following certain insinuations/rumors and an anonymous letter received regarding Rajiv’s separation, the Board/Audit Committee ordered two separate independent investigations over the last one year into this matter – the first in October 2015 and the second in August 2016.
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.
The statement also pointed out that Bansal had denied on record that he had made any such insinuations against the management. Bansal hasn’t responded to the statement.