Heading a company founded and based out of Bangalore, with a seven founder member team that were all South Indians, CEO Salil Parekh decided to embarrass himself by reportedly saying in response to Board Members raising concerns,'Those two Madrasis make silly points, ignore them'.
It's not that easy to ignore. Once lauded as the most transparent listed Indian company, Infosys is now rocked by multiple whistleblower allegations in the past two years. An anonymous employee group, named as 'Ethical Employees', has filed a complaint to the board of Infosys Limited and the US Securities and Exchange Commission (SEC), accusing the domestic tech giant of indulging in 'unethical' practices to generate more profit and revenue, and pressuring employees to highlight only good news in deals and business. The group has accused company Chief Executive Officer Salil Parekh of bypassing reviews and approvals to get bigger deals, and that "several billion dollars of deals have nil margin".The group claims they have voice recordings of the CEO and the CFO to prove the allegations in the complaint.
Claims include that the company asked them not to "fully recognise costs like visa costs" to earn more profit. It added that when the auditor pointed it out, the issue was postponed by the company.
The letter also quotes Parekh making remarks against two board members, DN Prahlad and D Sundaram. The whistleblower group says the CEO had told them that "no one in the board understands these things, they are happy as long as the share price is up: "Those two Madrasis (Sundaram and Prahalad) and Diva make silly points, you just nod and ignore them".
Update 18:00: Infosys shares are sharply down pre-market on the NYSE after the whistleblower complaint.