Pune court directs Maharashtra ACB to probe Cognizant bribery allegations

In a significant development, the sessions court in Maharashtra has instructed the Anti-Corruption Bureau (ACB) to initiate an investigation into allegations against IT giant Cognizant Technologies. The company is accused of engaging in bribery to obtain necessary permits and environmental clearances for its campus in Hinjawadi, Pune. This directive was issued on April 19, following a complaint by Delhi-based environmental activist and retired police officer Prit Pal Singh, represented by lawyer Pratik Rajopadhye.

The complaint stems from proceedings by the Securities Exchange Commission (SEC) of the USA against Cognizant Technology Solutions Corporation, the parent company of Cognizant Technology Private Ltd., India. These proceedings highlighted alleged violations of the Foreign Corrupt Practices Act (FCPA) involving bribery to secure business advantages. Singh’s plea urged the Pune court to mandate the ACB to register an offence under the Indian Penal Code and Prevention of Corruption Act against Cognizant, its Indian construction contractor, and Manikandan Rammurthy, former vice president of administration and real estate officer at Cognizant, India.

Additional Sessions Judge S.B. Hedaoo noted that references to these transactions were evident in the US SEC’s order, providing enough material to proceed with the complaint. The judge emphasized the necessity of an urgent investigation to prevent potential evidence tampering within the company’s digital records.

The allegations detail that between 2013 and 2014, Cognizant’s Indian subsidiary reimbursed USD 7,70,000 to a contractor firm. This amount was allegedly used as a bribe for obtaining permits and clearances for its Pune campus. This revelation came to light during a 2016 internal audit by the parent company in the USA, which subsequently reported the matter to the SEC. In response to these allegations, Cognizant faced prosecution by the Department of Justice in the USA and agreed to a settlement involving a penalty payment of 25 million dollars.

Cognizant has refrained from commenting on this ongoing legal matter but affirmed its commitment to lawful compliance. The ACB Pune is now tasked with investigating these serious allegations and compiling a report on their findings. This case underscores the ongoing challenges in combating corporate corruption and highlights the international ramifications of such practices. Good Returns