Business

Infosys Loses Case Against Former CFO Rajiv Bansal, Asked To Pay Rs 12.17 Crore

DIVYIA ASTHANA | 0
3817
| September 18 , 2018 , 14:44 IST

One of India's top IT firms, Infosys lost an arbitration over severance package to its former Chief Financial Officer Rajiv Bansal and has been asked to pay Bansal the outstanding amount of Rs 12.17 crore along with interest, the firm said on Tuesday.

Rajiv Bansal had taken Infosys to arbitration for holding back his severance pay of Rs 17 crore, while Infosys sought a refund of Rs 5.2 crore from Bansal that had previously been paid to him, as well as damages.

“The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr Rajiv Bansal. Per the award, Infosys is required to pay Mr Bansal the outstanding severance amount of Rs 12.17 crore with interest," the company said in an announcement to stock exchanges on Tuesday.

ALSO READ: Loss For Infosys As Chief Financial Officer M D Ranganath Decides To Resign 

"While the award acknowledges that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected," the filing said, adding that the arbitral award is confidential.

Initially, Infosys has agreed to pay Bansal a severance amount of Rs 17.38 crore, equivalent to 24 months of salary when he left the firm in 2015, but the company suspended payments after giving him Rs 5 crore as co-founder N R Narayana Murthy and others objected to the severance package being 'excessive'. The severance payout to Bansal was one of the issues raised by Infosys founders alleging governance lapses at the Bengaluru-based firm.

After the payments were suspended, Bansal took the firm to arbitration to claim the remaining Rs 12 crore of his severance pay.

The next Chief Financial Officer at the IT firm, M D Ranganath who had been the CFO for the past 3 years, with an overall experience of 18 years with Infosys, resigned last month.