IGate Corp. (NASD: IGTE) terminated president and CEO Phaneesh Murthy citing an internal investigation over an employee claim of sexual harassment, the company announced on May 20. The firm appointed Gerhard Watzinger as interim president and CEO.

The probe found Murthy’s failure to report a relationship with a subordinate employee had violated company policy as well as Murthy’s employment contract, according to the company. However, no violation of the company’s harassment policy was found.

“The board deliberated extensively on this matter,” said co-Founder and co-Chairman Sunil Wadhwani. “We recognize the significant contributions Mr. Murthy has provided over the past 10 years in helping establishin iGate as a leader in the IT industry. He has worked hard to improve the value of iGate, and we greatly appreciate his efforts. However, as a result of this violation of iGate policy, we asked Mr. Murthy to step down.”

Murthy had taken on the role of president and CEO effective April 1, 2008.

Murthy has had difficulties in the past. The Economic Times of India reported that he was removed from Infosys in the early 2000s on another charge of sexual harassment. The Times of India reported that the person who made the sexual harassment claim in the iGate incident had become pregnant and is planning to sue both the company and Murthy.