Big setback for Infosys; firm loses Rs 12.17 cr salary case against Rajiv Bansal
The former CFO Rajiv Bansal had invoked the arbitration clause in his severance contract demanding the rest of his allotted payout.
In a big setback to IT-giant Infosys, the company now owes about Rs 12.17 crore to its former CFO Rajiv Bansal. This former CFO said goodbye to Infosys in October 2015, just after three years of his work in the company starting from October 2012. The former CFO had invoked the arbitration clause in his severance contract demanding the rest of his allotted payout. However, looks like good news has arrived at Bansal's door in the arbitration case, as the tribunal has asked Infosys to award the former this big payout along with interest.
In a notification to BSE, Infosys said, “The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr. Rajiv Bansal.”
Per the award, Infosys is required to pay Bansal the outstanding severance amount of Rs.12.17 crores with interest, added the notification.
While the award acknowledges that Infosys had bona fide dispute, its counter claim for refund of previously paid severance amount of Rs. 5.2 crores and damages, however, has now been rejected.
When Bansal resigned, the company had agreed to pay him severance of about Rs 17.38 crore. However, it has been revealed that, Infosys only paid Bansal around Rs 5 crore. Hence, Bansal had to invoke his rights before an arbitral tribunal.
Today, the stock price of Infosys was trading at Rs 721.25 per piece down by 0.73%. However, so far it had touched an intraday low of Rs 720.10 per piece.