IT major Tata Consultancy Service (TCS) has refuted any “fraud” in its recruitment process and said that after intervisitation, “no key managerial person has been found involved”, though the company admitted there indeed has been a complaint regarding a scam in the recruitment process of contract resources.
A report by Mint said that a “whistleblower has alleged that ES Chakravarthy, the global head of TCS’s resource management group (RMG), the company’s recruitment division, had been accepting commissions from staffing firms for years” and subsequently sent Chakravarthy to leave and fired four executives the division, and also blacklisted three staffing firms. Citing an executive of the company, the report also said the “scandal” may have involved Rs 100 crore.
However, TCS in a statement said that its recruitment activities are not handled by the RMG.
“RMG is responsible for allocation of available resources to various projects and in case of any shortfall, fill such requirements through contractors. The complaint referred to in the article relates to the hiring of such contract resources employed by the contractors,” it said.
After the 6 lakh employee-strong company received a complaint, it said it launched a review to examine the allegations and found that this “does not involve any fraud by or against the company and no financial impact; the issue relates to breach of Company’s Code of Conduct by certain employees and vendors providing contractors, and no key managerial person of the Company has been found to be involved”.
Meanwhile, Pune-based labour union Nascent Information Technology Employees Senate (NITES) said it has written to the Ministry of Labour and Employment, Government of India regarding the matter.
“The impact of this scandal on the existing and future employees of TCS cannot be overstated. It has created an environment of distrust, affecting the morale and motivation of the workforce…..It undermines fair competition, obstructs merit-based hiring, and creates an environment of mistrust and uncertainty,” said Harpreet Singh Saluja, President of NITES.
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