Infosys said it has paid Rs 34.35 lakh to settle the investigation into the incident of the company paying over Rs 17 cr as severance pay to Rajiv Bansal, who resigned as its finance head in October 2015.
There have been allegations, including from the side of founder Narayana Murthy, that everything was not well with the deal to pay so much money as severance.
Infosys said its settlement with the Securities and Exchange Board of India, India’s securities market regulator, was done without admitting any wrongdoing.
SEBI will cease all investigations and proceedings in the matter, the company said.
The Bangalore-based company had forwarded the settlement proposal on Dec 5, 2017.
“The Settlement Application pertained to matters relating to the severance agreement entered into with the former CFO of the Company in October 2015, and was based on an undertaking by the Company without admitting the findings of facts and conclusion of law.
“The Company has paid a settlement amount of INR Thirty Four Lakhs Thirty Five Thousand (INR 34,35,000/-) in respect of the said settlement of allegations under the Settlement Order.
“Pursuant to the Settlement Order, the possible proceedings against the Company stand settled and no enforcement action will be initiated by SEBI against the Company in respect of the said allegations,” it said.
Infosys CEO Vishal Sikka had stepped down in the context of the allegations, claiming that he was not able to focus on his job as much of his time was spent on countering allegations.
Indian companies do not typically offer such high severance packages to any executive, large or small.
Stakeholders were therefore caught by surprise by the company’s decision to offer such a large amount.