Infosys loses arbitration case, required to pay Rajiv Bansal Rs 12.17 crore plus interest

BENGALURU: Infosys has been asked to pay its former chief financial officer Rajiv Bansal Rs 12.17 crore with interest, after the arbitration tribunal ruled in the favour of the former executive.

Bansal had dragged the company to arbitration after it halted payouts on his over Rs 17 crore severance. The Bengaluru-headquartered IT company had filed a counter claim against Bansal asking for the refund of the previously paid severance of Rs 5.2 crore and other damages.

“While the award acknowledges that that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected... Infosys will take legal advice for necessary actions to be undertaken in respect of the award,” the company said in a statement to the Bombay Stock Exchange.


Bansal’s severance had been a flashpoint in the governance battle waged by founder NR Narayana Murthy against the company’s board last year. Murthy said the outsized severance could have the appearance of ‘hush money.’ When Bansal left Infosys in 2015, Infosys had agreed to pay him Rs 17.38 crore in severance pay, equalling 24 months of pay.