Plea seeking action on IT firm for bribing officials admitted

As per the plea moved by Desiya Makkal Sakthi Katchi proceedings of the Securities and Exchange Commission at the United States of America especially the order dated 15.02.2019 would disclose that Cognizant Technology Solutions Corporation had authorised a contractor to pay $2 Million bribe to a Senior Government official for issuance of a planning permit for their project at Chennai.

During 2013-14, Cognizant’s Indian Subsidary, authorised the said payment in the form of bribe of approximately, $7,70,000 to a Government Official for an environmental clearance for a project in Pune also. That apart, in the year 2015, the said Indian Subsidary retroactively authorised and reimbursed to third party contractor for approximately $8,70,000 in bribes that it had paid to government officials for construction related permits in Siruseri, TN and received ill-gotten gains of approximately $16,394,351 as a result of the conduct.

The petitioner’s counsel further submitted that ultimately, the said concern had agreed to pay certain penalties with interest and the said fact was brought to the knowledge of CBI and Directorate of Vigilance and Anti-corruption in the form of representations dated 10.09.2019 and 28.11.2019 respectively. But despite receipt and acknowledgment, no action whatsoever, has been taken and hence is constrained to approach this Court.

The division bench comprising Justice M Sathyanarayanan and Justice R Hemalatha on extracting the relevant portions of the said order dated 15.02.2019, which held that the unlawful payments were paid from Cognizant India’s Bank accounts, said “The said proceedings of the Security Commission of the United States of America, was also in public domain and hence there is no need to lodge any specific complaint. It is also open to the Central Bureau of Investigation and the Directorate of Vigilance and Anti-Corruption, to initiate appropriate enquiry.” Following this, the bench ordered notice to both the agencies returnable by March 9.

The report had also held that during the relevant period Cognizant also failed to devise and maintain a sufficient system of internal accounting controls at its corporate headquarter and at Cognizant India. This Conduct took place in an environment in which Cognizant failed to adequately enforce its corporate anti-bribery and anti-corruption polices.