New Delhi: IT major Infosys Ltd on Tuesday said that it had lost an arbitration involving severance package to former CFO Rajiv Bansal. The company said that the arbitrators asked it to pay outstanding amount of Rs 12.17 crore, with interest.
In a filing report, company officials said, "The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr Rajiv Bansal."
"While the award acknowledges that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected," the filing said, adding that the arbitral award is confidential."
Bansal's severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the Bengaluru-based firm. When Bansal left Infosys in 2015, Infosys had agreed to pay him Rs 17.38 crore in severance pay, equalling 24 months of pay.
The IT firm had initially agreed to pay Bansal a severance amount of Rs 17.38 crore or 24 months of salary. But, Infosys suspended payments after Bansal got Rs 5 crores.
This on the insistence of co-founder NR Narayana Murthy and others who had objected to the severance package as "excessive".
Following this, Bansal dragged his former employer to an arbitration to claim the remaining Rs 12 crore of his severance pay.
Infosys said it will take legal advice for further action on the issue.