Tata Consultancy Services (TCS), India’s largest IT firm, is currently embroiled in a scandal involving alleged bribery by some of its senior executives from staffing firms. Although precise details of the scandal remain unclear, it came to light after a whistleblower reportedly contacted TCS’s CEO and COO to accuse E.S. Chakravarthy, the global head of TCS’s resource management group (RMG) responsible for recruitment, of accepting commissions from staffing firms over an extended period.
Upon receiving the complaint, TCS initiated an investigation, forming a team to probe the allegations. Following the investigation, TCS placed the head of recruitment on leave, terminated four RMG executives, and blacklisted three staffing firms. While the full scale of the irregularities is yet to be determined, it is estimated that those involved in the scandal may have earned commissions totaling at least ₹100 crore (approximately $13.5 million).
Chakravarthy, who holds the rank of vice president at TCS and has been with the company since 1997, reported to the chief operating officer. He has since been barred from the office, although his email account remains active.
The scandal has surprised many, given TCS’s strong reputation in the IT industry, and has raised questions about the effectiveness of the company’s internal controls. Investigations into the extent and duration of the scam are ongoing.
