TCS Terminates 16 Employees in Bribery Scandal: Job Offers for Cash

India’s largest IT company, Tata Consultancy Services (TCS), has made significant changes in its workforce, laying off 16 employees as part of a reshuffling. Simultaneously, six vendors have been banned from doing business with the company, affecting all their businesses, owners, and partner companies.

The company provided this information in an exchange filing on October 15. TCS stated, “This matter involves a total of 19 employees, out of which 16 have been redeployed and three have been separated from their management roles.”

CEO States – “We Have Taken Appropriate Action”

The company’s CEO, Kritivasan, said, “We have completed our investigation. We believe that anyone breaking our code of conduct has been appropriately managed. In this case, the actions have been completed, and the investigation is closed.”

How TCS Uncovered the Scandal

This case first came to light on June 23, 2023, when a whistleblower wrote to the company’s CEO and COO alleging that RMG’s global head, ES, has been diverting jobs. TCS then formed a committee of three members to investigate, including Chief Information Security Officer Ajit Menon.

In This Scandal, Those Involved Earned at Least 100 Crore Rupees

When the cases came to light, it was found that in the last three years, the company had retained employment for 3 lakh employees, including contractors. It was also estimated that those involved in this scandal had earned at least 100 crore rupees through commissions.

In Another Quarter, Tcs Reported a Significant Profit of 11,342 Crores

On October 11, TCS announced its results for the second quarter of FY24, showing a net profit of 11,342 crores, an 8.7% increase on an annual basis. The company reported a net profit of 10,431 crores in the same quarter of the previous year, Q2FY23. The company’s consolidated revenue rose 8% from 55,309 crores to 59,691 crores in the year-ago quarter. In the last quarter, the company’s revenue was 59,381 crores.

Niyati Rao

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