Orange County in the US has filed a lawsuit against Tata Consultancy Services (TCS) alleging the Indian company made “a series of false promises” and “misrepresentations”.

TCS, India’s largest software exporter, declined to comment, terming it as a legal matter.

In the lawsuit, filed in April this year at the California Central District Court, the county had also accused TCS of delays and cost over-runs in a software project. Orange County is the third most populous county in California, next to Los Angeles and San Diego.

In 2007-08, the Tata group company had won a bid to develop a tax collection and management system for the county. Under the contract, Tata America International Corp (TCS America) was to develop and implement the system.

The lawsuit alleges that TCS made a series of false promises and intentional misrepresentations relating to the budget for the project and timeline, which it had no intention of “complying” with. This has resulted in “millions of dollars of damages”, and will continue to suffer damages for the years it will take to develop a replacement for the failed project. According to reports: “A modernisation of tax collection system that was supposed to take three years and cost less than $8 million will cost twice that amount and take twice as long”.

“As a matter of policy we don't discuss pending legal matters. We stand by the quality of work and commitment to customer success as demonstrated by the fact that over 98 per cent of our business comes from repeat clients,” a TCS spokesperson said.

(This article was published on August 15, 2013)
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