Infosys shares plunge 16%, Nandan Nilekani says whistleblower complaints being looked into

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New Delhi, IT services firm Infosys plummeted 16 per cent on concerns over a whistleblower complaint which alleges that two of the company’s top executives were indulging in unethical practices to increase short-term revenue and profits. The scrip plunged 15.94 per cent to Rs 645.35 on the BSE. On the NSE, it tanked 15.99 per cent to Rs 645.

Infosys had said the whistleblower complaint has been placed before the audit committee as per the company’s practice, and that it will be dealt with in accordance with the company’s whistleblowers policy.

According to reports, the complaint by a group that calls itself “ethical employees” had alleged CEO Salil Parekh and CFO Nilanjan Roy were indulging in “unethical practices” to boost short-term revenue and profits.

“The whistleblower complaint has been placed before the audit committee as per the company’s practice and will be dealt with in accordance with the company’s whistleblowers policy,” Infosys said in a statement.

In a statement on Tuesday, Infosys Chairman Nandan Nilekani said the company’s audit committee will conduct an independent investigation on whistleblower allegations.

The committee began consultation with independent internal auditors EY, and has retained law firm, Shardul Amarchand Mangaldas & Co. to conduct an independent investigation, Nilekani noted in his statement to the stock exchanges.

“These complaints are being dealt with in an objective manner,” said Chairman of Infosys Ltd Nandan Nilekani.

“The undated whistleblower complaint largely deals with allegations relating to the CEO’s international travel to the United States and Mumbai,” he said in a statement.

Nilekani said the company’s statutory auditors Deloitte India has also been completely updated on this matter post the board meeting of October 11.

An anonymous call from a group of employees who called themselves an ethical group sounded the alert and now the matter is being looked into.

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