TCS suspends 4 for violating code of conduct after whistleblower complaint

TCS has suspended four employees for violating its code of conduct, sources said Friday, following a whistleblower complaint received earlier this month.

They added that Tata Group, the country’s largest source of IT services, also blocked an unspecified number of vendors who offered talent on a contractual basis.

In a statement released late in the evening to the exchanges, TCS said it investigated the allegations in the complaint and found that the accusations “do not involve any fraud by or against the company and have no financial impact.”

The statement, which was issued after a media report published earlier in the day, also made it clear that “the reference to alleged fraud in the recruitment process is incorrect.”

She said the Resource Management Group (RMG) is tasked with allocating resources to various projects and filling the shortfall through contractors.

“The complaint referred to … relates to the recruitment of contract resources used by contractors,” it added.

The company also clarified that none of its key management officials had been involved in any wrongdoing.

“The matter relates to a breach of the Company’s Code of Conduct by certain employees and vendors providing contractors,” the exchanges reported.

Sources said that four employees and an unspecified number of contractors were suspended by the company after the investigation.

They explained that there were no financial transactions and there was widespread favoritism shown by some staff members in using the services of certain vendors.

TCS closed down 0.66 percent at 3,217.45 rupees a piece on BSE on Friday, against a correction of 0.41 percent on the index.