Info-tech

Infosys cleared of wrongdoingin Panaya, Skava acquisitions

Our Bureau Bengaluru | Updated on January 27, 2018 Published on June 23, 2017

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Independent probe finds no basis for whistleblowers’ allegations

The Infosys Board and top management have been given a clean chit by international law firm Gibson Dunn and investigation firm Control Risks in respect of allegations relating to the 2015 acquisitions of Panaya and Skava Systems.

According to a BSE filing, both firms were tasked with conducting investigations into allegations made by two anonymous whistleblowers that there were improprieties in the acquisitions.

It had been alleged that the Infosys M&A team had acted without securing proper approvals and the CEO received inappropriate compensation, spent lavishly on travel, security and its Palo Alto office, the statement said.

“We found no evidence supporting the whistleblowers’ allegations regarding acquisitions, there were no conflicts of interests or kickbacks, required approvals for M&A were obtained, thorough due diligence was done, valuations of the target companies done by an outside advisor were reasonable and the purchase price were within the range determined by the advisor. We found no evidence that the CEO received excessive variable compensation or incurred unreasonable expenses for security, travel and its Palo Alto office,” the investigators said in a statement.

Gibson Dunn & Crutcher is an international law firm recognised for its expertise in conducting internal investigations, and Control Risks is a global risk consultancy specialising in expert analysis and investigations, according to the information available on the company website.

In February, two anonymous whistleblowers sent emails to SEBI alleging wrongdoing on several counts.

The law firm interviewed 50 witnesses in India and the US, reviewed internal emails, Board minutes, public filings, internal documents and used forensic accounting experts to analyse technical and financial information and review done by Indian law firm Cyril Amarchand Mangaldas.

Also, Khaitan & Company, a law firm, was part of this investigation to provide legal counsel.

The Infosys stock closed marginally up by 0.32 per cent at ₹943.

Published on June 23, 2017
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