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Infosys submits applications with RoC in ex-CFO's severance agreement issue

Infosys had agreed to pay Bansal a severance amount of Rs 17.38 crore or 24 months of salary

Infosys
FILE PHOTO: The logo of Infosys is pictured inside the company's headquarters in Bengaluru | Photo: Reuters

IT firm Infosys on Friday said it along with some current and former executives has submitted applications with the Registrar of Companies in the matter related to severance agreement with former CFO Rajiv Bansal.

Infosys said it has applied for compounding "to put this legacy matter to rest".

"The company (along with certain current and former key managerial personnel) have submitted applications with the RoC, Karnataka...for compounding of certain alleged offences that pertain to matters relating to the severance agreement executed with the former CFO of the company in October 2015," Infosys said in a regulatory filing.

Infosys had agreed to pay Bansal a severance amount of Rs 17.38 crore or 24 months of salary, but the company suspended payments after he got Rs 5 crore as co-founder N R Narayana Murthy and others objected to the package as excessive.

Bansal's severance payout has been one of the contentious issues Infosys founders had raised to allege governance lapses at the Bengaluru-based firm.

Murthy had raised questions asking if the same was paid as "hush money".

Infosys, in its Friday filing, said through the compounding process, the company seeks to resolve certain alleged offences under the Act.

These include the company not seeking prior and separate approvals

required - as per the Act - from the Nomination and Remuneration Committee, Audit Committee and the Board of Directors, and not making the requisite disclosures, the filing said.

"In these applications, the company (and other applicants) have made multiple submissions including those setting forth their good faith belief on compliance with relevant provisions of the Act and having acted in an honest, reasonable and diligent manner and in the best interests of the company and its shareholders and without any intent to avoid or act in breach of any obligations under the Act," the filing added.

Infosys said it will provide an update on the conclusion of the compounding process.