Infosys former CFO Rajiv Bansal has moved Arbitration Tribunal to claim the portion of his severance pay that was held back by the company. The first hearing is scheduled to be held in May and former Supreme Court Judge RV Raveendran has been appointed as the sole arbitrator in the case, reports Times of India.
According to the report, Infosys had agreed to pay Bansal Rs 17.38 crore equivalent to 24-months pay when he left the company but only Rs 5 crore was paid out to him and remaining payment was suspended.
Certain payments to Rajiv under the agreement have been suspended pending certain clarifications with regard to such rights and obligations,” Infosys had said in a statement.
The Software giant took the step after its promoters NR Narayan Murthy along with others termed the huge severance pay to Bansal as excessive and said payment could be seen as “hush money”.
Though Infosys has dismissed allegations of any kind of irregularities, the company admitted that the severance payout was subjective and has since institutionalized a process for granting severance.
The TOI report also says that Bansal preferred arbitration over court proceedings because he believes it will provide for speedier determination of the issue and the proceedings will be private and confidential.