We have real people who work for real customers, says Nasscom

Says it will cooperate with DRI in any investigation to detect fraudulent exports

Information technology (IT) Industry body Nasscom has said while it would cooperate with the Directorate of Revenue Intelligence (DRI) and the government in detecting fraudulent exports of software, if any, it is not proper to say a large number of IT companies in India are indulged in fraudulent exports.

On the backdrop of the revelations that the alleged kickbacks in the VVIP chopper deal was sent to India through fraudulent software exports, a recent newspaper report quoting sources at DRI had said a large number of companies, except the big ones, indulge in fraudulent exports. This is happening because there is not a proper way in ascertaining the value of the software being exported, it had stated.

“Let me assure you that this industry is doing real exports with the help of real people and working with real customers. This is a vibrant industry that employs over 3 million people, and produced very very successful companies,” said Som Mittal, president of Nasscom.

“There may have been some instances here what DRI will investigate and find out, but I don’t think there is a sweeping statement that can be made that expect for the big companies, others are indulged in fraudulent exports,” he added.

In 2012-13, IT exports from India stood at $76 billion. For FY14, the industry is expected to clock export revenues of $84-87 billion maintaining a growth rate of 12-14 per cent, according to Nasscom estimates.

According to industry players, given the size of the industry, it is not possible to keep a watch on every company which is its member. The industry body is not just represented Indian IT companies, but by the global in-house (captive) centres for multinational software companies and lots of small companies.

"In any industry, you will always find players who will indulge in spurious activities. As an industry and country, it will be in our benefit if we are able to weed out such players at the earliest," Ganesh Natrajan, vice chairman and chief executive officer of Zensar Technologies.

Earlier, Nasscom had formulated a set of guidelines outlining the model code of conduct for its members. An ethic committee, set up by the industry body, is also looking into fraudulent practices by its members, if any.

“As an industry body, we will work with the government and see that the companies that contribute to the industry's growth have the right mechanism in place. In India, the IT industry is represented by large companies, MNC's and listed firms, who anyways provide huge data to both Nasscom and to the tax authorities,” said Sangeeta Gupta, VP, Nasscom.