Companies

Former PWC chairman Deepak Kapoor summoned in defamation case

PALAK SHAH Mumbai | Updated on October 23, 2019 Published on October 23, 2019

Deepak Kapoor, Chairman, PWC

Kapoor tried to defame me so that I would not expose tax evasion and fraud in the company, says former CFO Sarvesh Mathur

A Gurgaon (Haryana) court has summoned former PWC chairman Deepak Kapoor for further proceedings in a defamation matter based on a “prima facie” case, a copy of the order with BusinessLine shows.

Sarvesh Mathur, ex chief financial officer (CFO) of PWC, had alleged falsification of accounts by employees and top executives of PWC, and said that he was forced to resign from the job due to his complaints.

According to Mathur, a termination letter was issued to him by Kapoor much later, after he left PWC, to defame him so that he would not try to expose the alleged tax evasion and other fraud. Mathur has said in his complaint that he was forced to stop attending work from September 2011, and later, resign in December. He has been involved in a long battle with PwC since then. Mathur has reportedly been a whistleblower against PWC.

When contacted Kapoor said he was not aware of the notice and was travelling. On informing him that BusinessLine had a copy of the order, he said his office (PWC) would deal with it.

The summons to him has been issued under Section 500 of the Indian Penal Code, which states that whoever defames another shall be punished with simple imprisonment for a term which may extend to two years, or with fine, or with both.

“The complainant’s performance was rated as having exceeded performance standards and expectations vide a letter dated April 30, 2010 by PWC. Thereafter, the complainant was forced to resign from the employment as he raised various financial concerns. Subsequently, a letter dated February 27, 2012, was issued by Deepak Kapoor thereby terminating the services of the complainant,” the court observed in its order.

The court has said in its order that at this stage it was only looking at a prima facie case based on allegations made in the complaint “supported by pre-summoning evidence and documents produced.” The court has also observed in its order that the fraud complaint stood dismissed against others, except Kapoor.

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Published on October 23, 2019
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