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This article is more than 2 year old.

As Infosys starts investing in Panaya, here's a look-back at the controversy

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According to a report by The Economic Times,  the firm has appointed a new CEO, brought in executives from outside and is looking to hire a slew of salespeople in the US for its acquired firm Panaya, in a bid to make former MD and CEO Vishal Sikka's 2015 acquisition successful.

As Infosys starts investing in Panaya, here's a look-back at the controversy
Panaya, the main flashpoint in a battle of governance between former Infosys CEO Vishal Sikka and founder NR Narayana Murthy, is in the news again. The Economic Times reported that the firm has appointed a new CEO, brought in executives from outside and is looking to hire a slew of salespeople in the US for its acquired firm Panaya in the last three months in a bid to make the 2015 acquisition successful.
In January 2019, the firm dropped the plan to sell the controversial Panaya and Skava. Infosys was looking to sell the Israeli-based subsidiary but failed to find any buyers. The controversy within the management sprung when it was alleged by a whistleblower that the then-CFO Rajiv Bansal walked out of a board meeting when the proposal to buy Panaya was made.
On this deal, there had been a whistleblower complaint, filed by the general legal counsel, David Kennedy, filed the markets regulator Securities and Exchange Board of India (Sebi).
The whistleblower alleged that the deal sought a personal benefit for the then top officials when Sikka headed the firm. The complaint said that the relatives of the top officials of the company had invested in a fund which further invested the money in Panaya which meant that the officials would gain if Panaya was acquired at a hefty valuation. Panaya was acquired for $200 million that year.
The complaint also alleged that the valuation did not seem fit as the firm at the time did not furnish or declare stable or tangible results.
Bansal, after reportedly walking out of the meeting, suddenly left the organization. Not only that, Bansal was offered a high severance pay which was pointed to be unusual for the company.
After the unusual move taken by the company, speculations in the market and the fraternity became the talk of the town.
The speculations got the attention of co-founder Narayan Murthy. Murthy denied the allegations of the deal being a personal gain for the top officials. He, however, reportedly accused Sikka of not being transparent in the deal, while also charging him of other misdemeanours. Three investigations into the deal were ordered,  but as such, no details have been disclosed by the firm.
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