An arbitral tribunal on Tuesday has instructed IT giant Infosys Ltd to reward its former chief financial officer (CFO) Rajiv Bansal with pending severance of ₹12.17 crore with interest.
Infosys in a record stated, “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 crores with interest.”
Following the setback, Infosys was trading in red at ₹721.95, or 0.63% or (-)₹4.60 after Bansal won the case.
What was the case?
- Rajiv Bansal, a former CFO of Infosys Ltd. resigned from his post in 2015. As per the deal he expected ₹17.38 of severance equivalent to 24 months of his pay.
- The company refused to pay more than ₹5.2 crore on account of the excessive nature of the payment.
- Co-founders NR Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani objected in front the board.
- Bansal filed a case against the company and led them to the tribunal in the preceding year. He claimed that his severance was lower than what was agreed upon.
- Infosys responded with a counter-claim asking to return ₹5.2.
The company in a statement to BSE said, “While the award acknowledges that Infosys had bona fide disputes, its counterclaim for a refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected… Infosys will take legal advice for necessary actions to be undertaken in respect of the award.”