TCS denies recruitment bribery allegations
MUMBAI, INDIA — IT giant Tata Consultancy Services (TCS) is under scrutiny following media reports of a whistleblower complaint accusing senior executives of accepting bribes from staffing firms for job placements.
The whistleblower reportedly communicated with TCS’s CEO and COO, asserting that the firm’s global head of recruitment division E.S. Chakravarthy and a VP had received commissions from staffing firms over the years.
In response, TCS initiated a thorough probe into these allegations, headed by a team that includes the company’s Chief Information Security Officer, Ajit Menon.
Following the investigations, the company also put the head of recruitment on leave, terminated four executives, and blacklisted three staffing firms allegedly involved in the bribery.
Chakravarthy has also been barred from office, and another official, Arun GK, has also been released.
Though the extent of these irregularities remains uncertain, some reports estimate the culprits may have earned upwards of INR1 billion (US$12.2 million) through these illicit commissions.
In an exchange filing, TCS rejected the media characterization of the situation as a “recruitment scam,” clarifying that it relates to hiring contract resources and not recruitment handled by the Resource Management Group.
The company insists no fraud was committed by or against it, and no key managerial personnel was involved. Despite the turbulent shares day on BSE, TCS maintains its resolve to investigate and rectify any breaches in its code of conduct.
