On Tuesday, Infosys Limited issued a statement on behalf of Chairman Nandan Nilekani to the stock exchanges. It said that the two anonymous complaints as disclosed by the company on the previous day titled "Disturbing unethical practices" and "Whistleblower Complaint" had been placed by the company before the Audit Committee on 10 October 2019 and before the non-executive members of the Board on 11 October 2019.
Nilekani conveyed that to assure independence in the ongoing investigation, the CEO, Salil Parekh, and CFO, Nilanjan Roy, both of whom have been accused of wrong practices, are being kept away from the matter.
Shares of Infosys Limited slumped by over 13 percent, the most in 6 years and touch an intraday low of Rs 645.35 on BSE, reacting to the complaints.
"These Complaints are being dealt with in an objective manner. The undated whistleblower complaint largely deals with allegations relating to the CEO's international travel to the US and Mumbai," the letter explained.
"Additionally, on October 16, 2019 the Company was made aware of a letter dated October 3, 2019 which was purportedly written to the Office of Whistleblower protection program, Washington D.C. This letter refers to the September 20, 2019 complaint, and to emails and voice recordings in support of the allegations," Nilekani said.
"Although we have not been provided any of the emails or voice recordings, we will ensure that the generalized allegations are investigated to the fullest extent. Additionally, to ensure independence in these investigations the CEO and CFO have been recused from this matter," he added.
According to his statement, the Audit Committee had begun consultation with the independent internal auditors (Ernst &Young) on 11 October and has now retained the law firm of Shardul Amarchand Mangaldas & Co. (as on 21 October 2019) to conduct an independent investigation.
"The Board, in consultation with the Audit Committee, will take such steps as may be appropriate based on the outcome of the investigation," he said, adding that the company's board "is committed to uphold highest standard of corporate governance and protect the interests of all stakeholders."