Infosys Ltd has lost an arbitration over severance package to its former CFO Rajiv Bansal and has been asked to pay outstanding amount of Rs 121.7 million, with interest, the firm said Tuesday.
“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,” Infosys said in a BSE filing.
As per the award, Infosys is required to pay Bansal the outstanding severance amount of Rs 121.7 million, with interest, it added.
“While the award acknowledges that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected,” the filing said, adding that the arbitral award is confidential.
Infosys said it will take legal advice for further action on the issue.
The IT firm had agreed to pay Bansal a severance amount of Rs 173.8 million or 24 months of salary, but the company suspended payments after he got Rs 50 million as co-founder N R Narayana Murthy and others objected to the severance package as excessive.
Following this, Bansal had dragged his former employer to arbitration to claim the remaining Rs 120 million of his severance pay.
Bansal’s severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the Bengaluru-based firm.
When Bansal left Infosys in 2015, Infosys had agreed to pay him Rs 173.8 million in severance pay, equalling 24 months of pay. – Business Standard