Disclosures not required on whistleblower's charges: Infosys to exchange

Infosys on Thursday said the company was not obliged under the law to give disclosure on the whistleblower allegations until the completion of investigation process.

"Before conclusion of the investigation of the generalized allegations in the complaints, a disclosure under regulation 30 of LODR Regulations was not required," it said in a filing. "The disclosure made on October 22, 2019 was to respond to multiple media inquiries and reports."  

The Bengaluru-headquartered firm said that it complied with its whistleblower policy through placing the complaint before the audit committee of its board. Earlier, BSE had demanded a clarification from the company for non-disclosure of whistleblower complaint to exchanges.

An anonymous group, calling itself ‘Ethical Employees’, in a letter dated September 20, alleged that Infosys’ current management was taking ‘unethical’ steps to inflate short-term revenue and profit. In the letter, the whistle-blower has flagged up concerns relating to several zero margins deals, which were closed by the current management. Post these revelations, Infosys' stock price has lost more than 16 per cent in three trading sessions.