News

Published: June 27, 2023
Updated: June 27, 2023

TCS Denies 'Bribes-for-Jobs' Scandal, Calls Allegations Incorrect- Company sacks 4 officials from RMG division

Tata Consultancy Services (TCS), India's leading IT firm, has vehemently denied allegations of fraud in its recruitment process following reports of a 'bribes-for-jobs scandal.' TCS addressed the accusations, asserting that they had thoroughly investigated the complaint and found no evidence of fraud or financial impact. The company released a statement clarifying its position on the matter.

The Alleged Scandal:

A whistleblower sent a complaint to TCS CEO K Krithivasan and COO N Ganapathy Subramaniam, accusing ES Chakravarthy, the global head of the resource management group (RMG), of accepting commissions from staffing firms over an extended period. The allegations suggested that those involved in the scam had made at least ₹100 crore through these commissions.

Internal Investigation and Actions Taken:

TCS formed an internal committee, including chief information security officer Ajit Menon, to investigate the whistleblower's complaint. Following the investigation, TCS placed the head of recruitment on leave, terminated four officials from the RMG division, and imposed a ban on three staffing firms. The RMG is responsible for resource allocation and filling project shortfalls through contractors.

Statement from TCS:

TCS clarified that none of its key managerial positions were involved in any irregularities. The issue, according to the company, pertained to a breach of the Code of Conduct by certain employees and vendors providing contractors. TCS emphasised that the allegations did not implicate the company itself.

Impact and Reflection:

The revelation of this recruitment scandal at TCS, a company with significant revenue and a vast employee base, has caused turmoil in India's IT sector. It has raised concerns about the effectiveness of safeguards and how such a situation could have transpired. The incident prompts a broader discussion about ensuring transparency and adherence to ethical standards in the recruitment processes of major organisations.

TCS maintains its stance, firmly denying the 'bribes-for-jobs' scandal and affirming that the allegations do not involve any fraudulent activities by the company. As the situation unfolds, it is crucial for organisations to review and strengthen their internal mechanisms to prevent any breaches of trust and maintain the integrity of their recruitment processes.

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