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Infosys

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2021

    Income Tax portal failures

    The Indian Income Tax portal developed by Infosys experienced persistent glitches after its launch. The problems prompted government intervention, public criticism, and an extension of the tax-filing deadline.

  2. 2020

    GSTN portal technical problems

    Technical problems affecting India's GSTN portal led to scrutiny from the Finance Ministry and summonses involving Infosys executives. Users and tax professionals continued to report issues during subsequent system changes.

  3. 2020

    Former employee sues Infosys alleging racial discrimination

    Lawsuit filed

    A former Infosys employee filed a lawsuit in a U.S. court alleging racial discrimination and retaliation by the company. Infosys denied the allegations and said it would defend itself.

    Company response

    • Denial — Infosys

      We are aware of the case recently (June 11) filed by Linguist and deny allegations of discrimination and retaliation against her. We will defend in this matter,

    Source excerpt

    • We are aware of the case recently (June 11) filed by Linguist and deny allegations of discrimination and retaliation against her. We will defend in this matter,
    • A former woman employee of global software major Infosys filed a lawsuit in a US court alleging racial discrimination against her by the company as an act of retaliation..
  4. 2019

    California visa and payroll-tax settlement

    Infosys reached an US$800,000 settlement with the State of California concerning allegations that employees had worked under B-1 visas rather than required H-1B visas and that related payroll taxes had not been properly paid.

  5. 2019

    Infosys CEO responds to whistleblower allegations

    Company response

    In a controversy involving Infosys, CEO Salil Parekh responded to accusations contained in a whistleblower letter. Parekh said he had recused himself from the ongoing process and stated that he respected the audit committee's independent investigation. Infosys also condemned insinuations against its co-founders and former colleagues. The event concerns the company's handling of the whistleblower allegations and the CEO's public response.

    Infosys CEO Salil Parekh responded to accusations in a whistleblower letter, said he had recused himself from the ongoing process, and stated that he respected the audit committee’s independent investigation. Infosys also condemned insinuations against its co-founders and former colleagues.

    Company response

    • Denial — Infosys

      Infosys said it strongly condemns the mischievous insinuations made by anonymous sources against the co-founders and former colleagues.

    Source excerpt

    • Infosys CEO Salil Parekh, who is the primary target of the whistleblower letter, responded to the accusations for the first time on Wednesday.
    • I have recused myself from the ongoing process and I respect that the audit committee has started an independent investigation.
    • Infosys said it strongly condemns the mischievous insinuations made by anonymous sources against the co-founders and former colleagues.
  6. 2019

    Infosys fined $800,000 in the US

    Fine or penalty

    Infosys was reported to have been fined $800,000 in the United States in connection with worker misclassification and tax fraud.

    Source excerpt

    • Infosys fined $800,000 for worker misclassification, tax fraud in US
  7. 2019

    SEC investigates Infosys over whistleblower complaints

    Investigation

    Infosys said the US Securities and Exchange Commission had launched an investigation into whistleblower claims alleging that the company used unethical practices to boost revenue and profit. The article reports the claims and investigation, not a finding of wrongdoing.

    Company response

    • Investigation — Infosys

      Infosys in a statement to the stock exchanges said that its audit committee was examining the allegations, in line with its policy on whistleblowers.
    • Denial — Infosys

      adding that it intends to defend itself “vigorously”.

    Source excerpt

    • A securities class action lawsuit has also been filed against the company in a U.S. federal court based on the complaints, the company said, adding that it intends to defend itself “vigorously”.
    • Infosys Ltd said on Thursday that the U.S. Securities and Exchange Commission had launched an investigation into whistleblower claims that Infosys, the software services firm, used 'unethical practices' to boost revenue and profit.
    • Infosys Ltd said on Thursday that the US Securities and Exchange Commission had launched an investigation into whistleblower claims that the Indian software services firm used ‘unethical practices’ to boost revenue and profit.
  8. 2013

    US visa-practice investigation and settlement

    US authorities investigated allegations that Infosys used B-1 visitor visas for work that should have been performed under other visa classifications. Infosys agreed to a US$34 million civil settlement in October 2013 without admitting liability and disputed allegations of systemic visa fraud or immigration abuse.

  9. 2013

    MCA21 portal service problems

    Technical problems emerged after Infosys took over work on India's MCA21 corporate-filing portal, with further difficulties reported after a later migration and version update.