Infosys says there is no prima facie evidence on whistleblower complaints

BENGALURU: Major IT services in India Infosys Ltd said Monday it received no evidence to support the allegations in a complaint letter last month, sending shares of up to 6.5% in the morning trade.

A letter, which the company’s employees wrote in October, said the chief executive, Salil Parekh, urged them and others to avoid approvals for large businesses, fearing a negative impact on actions by reducing the earnings.

There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations, Infosys said in a letter to the National Stock Exchange (NSE) dated November 2.

Infosys said last month that the US Securities and Exchange Commission (SEC) had launched a probe into whistleblower claims that the Indian software services firm used 'unethical practices' to boost revenue and profit.

The complaints were still under investigation and the company was not in a position to determine the specificity, credibility and materiality of the complaints, the Bangalore-based company said in its letter to the NSE.

The letter responded to the NSE's request to the company to explain why it had not disclosed the receipt of the letter.

Infosys said since the allegations were not deemed material under Indian regulation, the company was not obligated to disclose them.