Cognizant and L&T Face Bribery Case Probe by Maharashtra Police

The Anti-Corruption Bureau (ACB) of Maharashtra Police has initiated legal action against officials from IT giant Cognizant Technologies, engineering conglomerate Larsen & Toubro (L&T), and several unidentified government officials. This move comes in light of allegations involving a bribery case amounting to USD 7,70,000. The case revolves around accusations that Cognizant Technologies, through its construction contractor L&T, paid bribes to local government officials. These alleged bribes were aimed at securing necessary permits and environmental clearances for its campus in Hinjawadi, located on the outskirts of the city, during the years 2013 and 2014.

The offence implicates officials from Cognizant Technologies, including Manikandan Rammurthy, the former vice president of administration and real estate officer for Cognizant in India. Additionally, implicated are officials from L&T and various unknown government officials who are accused of accepting the bribe. This case is being pursued under the Prevention of Corruption Act, as per the ACB's announcement.

The legal proceedings were set into motion following a directive from the sessions court on April 19. This directive was based on a complaint lodged by Delhi-based environmental activist and retired police officer Prit Pal Singh, represented by lawyer Pratik Rajopadhye. Singh's complaint drew upon proceedings by the Securities Exchange Commission (SEC) of the USA against Cognizant Technology Private Ltd's parent company, Cognizant Technology Solutions Corporation, USA. These proceedings were related to alleged bribery and violations of the Foreign Corrupt Practices Act (FCPA).

Additional Sessions Judge S.B. Hedaoo noted that references to the alleged transaction were found in the US SEC order, providing sufficient material to forward the complaint to the ACB Pune for further investigation. The judge emphasized the necessity of registering an offence against the unknown government officers involved to advance the investigation. He also highlighted concerns that without prompt investigative action, evidence stored in the company's computers might be lost.

According to the complaint, L&T, which was responsible for constructing Cognizant's Hinjawadi and Chennai offices, informed Cognizant that bribes needed to be paid to government officials at both locations to obtain necessary clearances. It is alleged that both Cognizant's USA-based parent company and its Indian subsidiary consented to this arrangement. The complaint further claims that in 2013-14, the Indian subsidiary reimbursed the contractor firm with USD 7,70,000. This amount allegedly corresponds to the bribe paid on behalf of Cognizant for clearances related to the Pune campus, as cited in the US SEC order.

This case underscores ongoing concerns regarding corporate governance and compliance with anti-corruption laws within multinational corporations operating in India. It also highlights the critical role of legal and regulatory frameworks in addressing and curbing corruption.