Action has been initiated against five employees, including ES Chakravarthy, global head of TCS’s resource management group (RMG), following a whistle-blower complaint earlier this month, one of the persons said.
As per the whistle blower, Chakravarthy had been accepting commissions from staffing firms for a number of years against recruiting their candidates in specific contractual, the person said.
Chakravarthy, who has spent over 26 years with the country’s largest software company, has been sent on a leave, the person added.
Three staffing firms have been blacklisted after initial investigation, sources said.
The recruitment activities in TCS are not handled by the Resource Management Group (RMG) as alleged, therefore the reference to alleged scam in recruitment process is incorrect, TCS said in a statement. “RMG is responsible for allocation of available resources to various projects and incase of any shortfall, fill such requirements through contractors. The complaint referred to in the article relates to hiring of such contract resources employed by the contractors,” in response to queries.
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The action was initiated after the whistle blower wrote to the company’s chief executive officer and chief operating officer, sources said.
The investigation started as soon as the complaint was received and will take up to 60 days to conclude, they said.
A second person aware of the development said so far the investigation has not found evidence of “kickbacks” or commissions. “It seems that some of the employees under investigation had used their proximity with people related to the staffing firms to push ahead CVs,” the person said.
“On receipt of the complaint, the company launched a review to examine the allegations in the complaint. Based on the review: this does not involve any fraud by or against the Company and no financial impact,” said the TCS statement. It also said that the issue relates to breach of the company’s code of conduct by certain employees and vendors providing contractors and no key managerial person of the company has been found to be involved.
The spouse of one of the sacked employees is rumoured to be associated with one of the blacklisted firms.
ET could not independently verify the names of the remaining employees being investigated.
A team of three executives, including TCS chief information security officer Ajit Menon, has been investigating the whistle-blower complaint, sources said.
A media report earlier in the day said TCS sacked four executives for allegedly accepting commissions from staffing firms and that the executives could have racked up to Rs 100 crore in commissions.
HR experts said TCS works with a large number of recruitment firms, and that despite having strict guidelines for such mandates, it is shocking that the company overlooked corrupt behaviour by some senior employees.
The country’s largest IT services firm has added more than 160,000 employees over the past three years.
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