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How a letter by ‘Ethical Employees’ led to crashing of the Infosys’ share prices

The group in the letter said that CEO Salil Parekh referred to two board members as ‘Madrasis’- a slur used for South Indians and even called Biocon chairperson Kiran Mazumdar-Shaw, who is an Independent Director on the board of Infosys as “Diva”.

Bangalore: Infosys CEO Salil Parekh and CFO Neelanjan Roy have been mired in the allegations of misconduct. An anonymous group of employees has made several serious allegations on both of them. In a letter, the group said that Salil Parekh and Neelanjan Roy manipulated the company’s investment policy in order to show more profit. They also said that the auditors were kept in dark and important information was hidden from them. The group says that it also has e-mail and voice recording in evidence of its allegations.

The unnamed Infosys group, named ‘Ethical Employees’, has written an explosive letter to the Infosys board as well as the US Securities and Exchange Commission alleging that the company resorted to ‘unethical’ conduct in order to earn higher profits and revenue. is. This letter was written on 22 September itself.

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In their complaint sent to Infosys in a letter, the group of employees has said that they have attached copies of the evidence with the mail and they want an immediate investigation into the matter. According to the letter, “Voice recordings and e-mails reveal how the CEO and CFO ignored the auditor and did this and threatened to change the auditor.”

What are the serious allegations?

It has been alleged in the letter that Infosys CEO Salil Parekh ignored the review report of big deals and hid the information received from the auditor and company board. The letter states that ‘Salil Parekh asked us to present miscalculations to show the margin and he prevented us from presenting the board on the issue of big deals’.

Infosys CFO Neelanjan Roy has also been accused of making changes in ‘investment policy and accounting’ without taking necessary approvals from the board and auditors so that Infosys’ profits are seen in the short term.

Rigging in revenue

The letter alleged that this group of employees was not being allowed to take charge, as it could have ‘impacted the company’s profits and share price’. The letter states that they have given evidence about irregularities in the revenue figures achieved in ‘Verizon, ABN, Intel and Japan JV deals. There is also a voice recording of CFO Nilanjan Roy, in which he is saying that such information should not be shared with the company’s auditors and board.

Parekh called board members as “Madrasis”

The group in the letter said that CEO Salil Parekh referred to two board members as ‘Madrasis‘- a slur used for South Indians and even called Biocon chairperson Kiran Mazumdar-Shaw, who is an Independent Director on the board of Infosys as “Diva”. “No one on the board understands these things, they are happy as long as the share price is up. Those two Madrasis (Sundaram and Prahlad) and diva (Kiran Mazumdar-Shaw) make silly points, you just nod and ignore them,” Salil Parekh allegedly told the group.

Nandan Nilekani says the investigation has begun

Meanwhile, Co-founder and Chairman of Infosys Nandan Nilekani has issued a statement saying, ‘Whistleblower’s complaint has been placed before the audit committee as per the company’s tradition and action will be taken as per the company’s whistleblower policy. ‘

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