Oursourcing major Infosys has been directed to pay around Rs 12.17 cr to former CFO Rajiv Bansal by an arbitration panel.
The panel was set up after Infosys landed in a controversy over the ‘huge payout’ extended to the former CFO when he left the company three years ago.
The arbitration panel comprised retired Supreme Court judge RV Raveendran.
Company co-founder N Narayanamurthy had raised questions about the need for such a big payout for a departing executive. Infosys soon after stalled the payment.
The company also reportedly alleged that Bansal had caused it to lose money by deleting data from official systems.
“The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Rajiv Bansal,” the outsourcing company said today.
“Per the award, Infosys is required to pay Mr. Bansal the outstanding severance amount of Rs.12.17 crores with interest.
“While the award acknowledges that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of Rs. 5.2 crores and damages has been rejected,” it added.
It said the arbitral award is confidential and that it will take “legal advice for necessary actions to be undertaken in respect of the award.”
It remains to be seen if the company will try to pursue the case or make the payment.
Infosys’ CEO Vishal Sikka had stepped down two years ago after Murthy leveled allegations of financial impropriety at the company.