Prosecute Infosys board, management in Rajiv Bansal's severance pay case: Whistleblower to SEBI

Market regulator SEBI should not let Infosys settle the former CFO Rajiv Bansal's severance case via 'back door', a whistleblower told the regulator in a letter.

The whistleblower urged the Securities and Exchange Board of India (SEBI) to deny the company's consent plea and hold management accountable in the case.

Earlier this week, Infosys had submitted a settlement application to SEBI with regard to issues surrounding the severance package of its former Chief Financial Officer.

The company said it want to resolve allegations that the severance pay was decided without seeking prior consent from the audit committee and the Nomination and Remuneration Committee.

In the letter, the whistleblower, said that the internal probe done the company was a 'real mockery of justice' as the management that precipitated excesses supervised it.

It also asks as to why the company is so reluctant in disclosing answers it wasn't 'hush money'. While it is a norm for companies to settle cases via backdoor, it should not be allowed this time, the letter said.

The letter urged the regulator to prosecute the board and management both.

Infosys had decided to pay Rs 17.38 crore as severance pay to the then CFO Bansal in 2015. However, it only paid Rs 5 crore to him as severance, holding back Rs 12 crore.

Earlier this year, a whistleblower had written to the regulator over alleged lapses in the Panaya deal and Bansal's severance pay. The letter had said that the severance pay was decided by the then CEO Vishal Sikka and then general counsel David Kennedy.