The great Infy feud: Sikka issues rejoinder to whistleblower

At a time when the IT industry in India was thinking that the Infosys internal feud is resolved, the CEO of Infosys, Vishal Sikka released an open letter for all its employees, bringing the Infosys administration matter to limelight once again. The open letter has raised speculations against the company's quality governance and also created an hype in the capital market. 

Sikka wrote the letter after receiving complaint by a whistleblower, who lodged a complaint with market watchdog Securities and Exchange Board of India (SEBI) that during February 2015, an irregularity was noticed in the acquisition of Israeli software company Panaya by Infy. The whistleblower alleged that USD 200 million purchase of Panaya was 25 per cent more than the valuation the firm received in a Series E funding round, a month before the acquisition.

However, Sikka strongly refuted the allegations and wrote that the rumours are just to defame the company. He added that false informations are being spread in the market by people with vested interests. 

Nevertheless, Sikka has informed through the letter, that Infosys will carry out a proper investigation to inquire and verify about the complaint. However, his letter clearly specifies that the complaint has been made only to defame the company's reputation and may be far from reality. 

At the time of filing this report at 1100 hours, Infosys is trading at Rs 1,013.00 level, up by 2.75 or 0.27 per cent.