IT services giant Tata Consultancy Services Ltd (TCS), has been rocked by a scandal after it was found that a few senior executives at the company accepted bribes from staffing firms in exchange for providing jobs to their candidates, reports Live Mint.

While the exact details of the scam are vague, two executives aware of the developments said a whistle blower, 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 (RMG), the company’s recruitment division, and VP at TCS, had been accepting commissions from staffing firms for years.

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. After weeks of investigation, TCS sent the head of recruitment on leave, sacked four executives from its Resource Management Group, and blacklisted three staffing firms. 

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

Although the company is yet to ascertain the scale of the irregularities, one of the two executives cited above said people involved in the scam may have earned at least INR 1 billion (USD 12.2 million) through commissions.

Mint could not independently ascertain the names of the staffing firms that have been blacklisted.

“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," a TCS spokesperson said.

The RMG division, estimated to be 3,000-strong, places almost 1,400 engineers, including new hires, on projects daily, averaging a placement per minute.

Earlier this year, TCS reported revenue rose 10.7% on a constant currency basis in its fiscal fourth quarter ended 31 March 2023. The group also recently announced its board appointed K Krithivasan as CEO and managing director of the company with effect from 1 June.