Infosys places whistle-blower letter complaint on Panaya buy before audit panel

Infosys has placed the anonymous whistle-blower complaint with its audit committee and is taking steps to initiate an investigation into the allegations made in the letter, the company disclosed to the stock exchanges on Wednesday. The whistle blower letter which was also addressed to Sebi had made serious allegations with regard to Infosys’ acquisition of Israel based technology firm – Panaya for $200 million in February, 2015. Infosys, however, strongly countered these allegations stating that the entire transaction was transparent and above board.

“Insinuations that anyone from the management team at Infosys benefitted from this acquisition are misleading and slanderous,” a statement from Infosys said on Monday.The Panaya acquisition came into focus following the questions raised by Infosys founder N R Narayana Murthy as he wanted to know the rationale for the high severance package paid to the then CFO, Rajiv Bansal.

The whistle blower letter had alleged that high severance package to Bansal was due to the various discrepancies in the Panaya deal including overpayment. It also alleged that the Board was not fully aware about the deal.

The Infosys statement on Monday had said that the Board had deliberated and unanimously approved the investment which was well within the valuation range determined by the evaluator.

Infosys Technologies Limited