India’s largest IT firm, Tata Consultancy Services (TCS), is facing a scandal involving alleged bribes accepted by some of its senior executives from staffing firms. While the exact details of the scandal are still emerging, a whistleblower reportedly informed TCS’s CEO and COO that E.S. 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.
In response to the complaint, TCS initiated an investigation and set up a team to look into the allegations. As a result of the investigation, TCS placed the head of recruitment on leave, terminated four executives from RMG, and blacklisted three staffing firms. The company has not yet determined the full extent of the irregularities, but it is estimated that those involved in the scam may have earned at least ₹100 crore (approximately $13.5 million) through commissions.
Chakravarthy, who is a vice president at TCS, joined the company in 1997 and reported to the chief operating officer. He has been barred from coming to the office, although his email ID remains active.
TCS, which ended the previous year with $27.93 billion in revenue and employs over 600,000 people, is known for its strong reputation in the IT industry. The scandal has raised questions about the company’s internal controls and has left TCS’s senior leadership shocked.
The scandal is particularly surprising given that large organizations like TCS are expected to have robust safeguards in place to prevent corruption. Investigations into the full extent of the scam are ongoing.
