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TCS whistleblower alleges bribery scandal involving staffing firms: Media reports

June 23, 2023

IT services firm Tata Consultancy Services is under scrutiny following media reports of a whistleblower complaint involving bribes for jobs.

According to Live Mint, a few senior executives at the company allegedly accepted bribes from staffing firms in exchange for providing jobs to their candidates.

While the exact details of the alleged scam are vague, two executives aware of the developments said a whistleblower, in a communication to TCS’s chief executive officer and chief operating officer, alleged that E.S. Chakravarthy, the global head of TCS’s resource management group, the company’s recruitment division, and VP at TCS, had been accepting commissions from staffing firms for years.

According to Live Mint, a TCS spokesperson said, “While there are complaints regarding code of conduct violations that arise from time to time, the company has robust processes for investigating and resolving them to closure.”

Following the complaint, the company promptly set up a team of three executives, including the firm’s chief information security officer, Ajit Menon, to probe the allegations, the spokesperson said. After weeks of investigation, TCS sent the head of recruitment on leave, terminated four executives from its resource management group, and blacklisted three staffing firms that were allegedly involved in bribing senior executives overseeing recruitment processes in the company to get business, Moneycontrol reported.

According to Business Today, Chakravarthy has been debarred from coming to the office. Another official in the division, Arun GK, has also been let go.

Although the company is yet to ascertain the scale of the irregularities, media reports say people involved in the scam may have earned at least INR 1 billion (USD 12.2 million) through commissions.