TCS Suspends 4 Employees for Violating Code of Conduct After Whistleblower Complaint: Report

Tata Consultancy Services (TCS) has suspended four employees for violating its code of conduct, following a whistleblower complaint received earlier this month, according to a PTI report. It also said the country’s largest IT services company has also barred an unspecified number of vendors who provided talent on a contractual basis.

In a late evening statement to the exchanges, TCS said it probed the allegations made in the complaint and found out that the charges do not “involve any fraud by or against the company and no financial impact”.

The statement made after a media report published earlier on Friday also clarified that the “reference to alleged scam in recruitment process is incorrect”.

It said the resource management group (RMG) is entrusted with allocating resources to various projects and fill shortfall through contractors.

“The complaint referred to…relates to hiring of such contract resources employed by the contractors,” it added.

The company also clarified that none of its key managerial persons has been involved in any irregularities.

“The issue relates to breach of the company’s Code of Conduct by certain employees and vendors providing contractors,” it informed the exchanges.

The PTI report, quoting sources, also said four employees and an unspecified number of contractors have been suspended by the company following the probe. They elaborated that there have not been any financial dealings and broadly involve favouritism shown by certain employees in hiring the services of particular vendors.

In the statement, TCS said, “On receipt of the complaint, the Company launched a review to examine the allegations in the complaint. Based on the review: (i) this does not involve any fraud by or against the company and no financial impact; (ii) the issue relates to breach of the company’s Code of Conduct by certain employees and vendors providing contractors; and (iii) no key managerial person of the Company has been found to be involved.”

The TCS scrip had closed 0.66 per cent down at Rs 3,217.45 a piece on the BSE on Friday, as against a 0.41 per cent correction on the benchmark.