28 May 2024

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By: Pritam Chattopadhyay

TCS_ebeesinfo

The Case of Tata Consultancy Services: Bribery in Job Placement. Scam of 100 crores

Read about: The Case of Tata Consultancy Services

A scandal involving bribery in job placements has recently embroiled Tata Consultancy Services (TCS), a major IT firm in India. According to reports, the global head of the Resource Management Group (RMG), ES Chakravarthy, was allegedly accepting commissions from staffing firms in exchange for offering jobs to their candidates. An internal whistleblower within the company reported this matter to the CEO and COO.

The Case of Tata Consultancy Services

In response to the allegations, TCS took swift action and formed a committee to investigate the matter. A thorough probe into the claims was conducted by the committee, which included Ajit Menon, the chief information security officer, among its three members. After the investigation, the head of recruitment was put on leave, and four officials from the RMG, including Chakravarthy, were terminated. Furthermore, Arun GK, another official from the RMG division, was also terminated. It was reported that over the past three years, TCS hired around 300,000 people, including contractors, and the individuals involved in the scandal may have earned at least Rs 100 crore (approximately $15 million) through commissions.

TCS’s RMG division, responsible for placing around 1,400 engineers on projects daily, consists of approximately 3,000 employees. This scandal has come as a shock to TCS’s senior leadership, as the company is known for its strong governance practices. After the investigation, a statement was released by TCS, clarifying that an inquiry had been conducted and no fraud involving the company or any financial impact had been found.

The Case of Tata Consultancy Services

They refuted the reference to a recruitment scam in the media report. The news of the scandal has raised concerns about corruption in the IT industry, where employee referral programs and staffing firms are common avenues for hiring. TCS’s swift response and actions to address the issue indicate their commitment to maintaining integrity and transparency in their operations.

A scandal involving bribery in job placements has recently embroiled Tata Consultancy Services (TCS), a major IT firm in India. According to reports, the global head of the Resource Management Group (RMG), ES Chakravarthy, was allegedly accepting commissions from staffing firms in exchange for offering jobs to their candidates. An internal whistleblower within the company reported this matter to the CEO and COO. In response to the allegations, TCS took swift action and formed a committee to investigate the matter.

A thorough probe into the claims was conducted by the committee, which included Ajit Menon, the chief information security officer, among its three members. After the investigation, the head of recruitment was put on leave, and four officials from the RMG, including Chakravarthy, were terminated. Furthermore, Arun GK, another official from the RMG division, was also terminated. It was reported that over the past three years, TCS hired around 300,000 people, including contractors, and the individuals involved in the scandal may have earned at least Rs 100 crore (approximately $15 million) through commissions. TCS’s RMG division, responsible for placing around 1,400 engineers on projects daily, consists of approximately 3,000 employees.

This scandal has come as a shock to TCS’s senior leadership, as the company is known for its strong governance practices. After the investigation, a statement was released by TCS, clarifying that an inquiry had been conducted and no fraud involving the company or any financial impact had been found.They refuted the reference to a recruitment scam in the media report. The news of the scandal has raised concerns about corruption in the IT industry, where employee referral programs and staffing firms are common avenues for hiring. TCS’s swift response and actions to address the issue indicate their commitment to maintaining integrity and transparency in their operations.

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