Infosys board member Kiran Mazumbdar-Shaw has stated that former company chairman R Seshasayee admitted to procedural lapses in the matter of the severance pay to former CFO Rajiv Bansal, apologising at the company's recently-held general meeting. She said Infosys' recent settlement application to Sebi was to pay a fine for the unintended procedural lapses.
The statement was tweeted in response to a query from a Twitter user who asked for her resignation from the board following the Infosys application. Many have viewed the answer as a confession to a controversy the company is yet to address. Former Infosys board member Mohandas Pai once again entered the discussion, disagreeing with the Infosys whistleblower's demand that Sebi should take exemplary action against the company. He said such settlement applications occur all the time in capital markets around the world “because some things are difficult to prove” and that “companies don't want to go through the ordeal of a regulatory action”.
He said if there is no criminality and deliberateness, it's normal for the company to file a settlement application. Pai did not believe there was fraud or misrepresentation by Infosys. Pai had previously said the settlement application was a vindication of Narayana Murthy's stand, and Infosys should apologise to Murthy.
