Pune Court Orders Police Probe into Bribery Allegations Against Cognizant Technologies

In a significant development, a sessions court in Pune has directed the Maharashtra Police’s Anti-Corruption Bureau (ACB) to investigate allegations of bribery against IT giant Cognizant Technologies. The directive stems from a complaint filed by environmental activist and retired police officer Prit Pal Singh, prompting the court to delve into claims that Cognizant paid bribes through a contractor to local government officials for securing permits and environmental clearances for its Hinjawadi campus on the outskirts of Pune.

The court’s order, issued on April 19, follows revelations from proceedings conducted by the Securities Exchange Commission (SEC) in the United States, which scrutinized Cognizant Technology Solutions Corporation’s alleged involvement in bribery and violations of the Foreign Corrupt Practices Act (FCPA).

Singh’s complaint, presented through his lawyer Pratik Rajopadhye, urged the Pune court to direct the ACB to register an offense under the Indian Penal Code and Prevention of Corruption Act against Cognizant, its Indian construction contractor, and Manikandan Rammurthy, former vice president of administration and real estate officer at Cognizant India.

Additional Sessions Judge S B Hedaoo, in the order, highlighted the importance of investigating the allegations promptly, citing the risk of crucial evidence potentially disappearing from the company’s computers. The court emphasized the necessity of registering an offense against the unidentified government officials implicated in the alleged bribery scheme to propel the investigation forward.

The complaint outlines instances where bribes were purportedly paid by the contractor firm, responsible for constructing Cognizant’s Hinjawadi and Chennai offices, to secure permits and clearances from government officials. Allegedly, Cognizant and its Indian subsidiary acquiesced to these arrangements, as evidenced by reimbursements totaling USD 7,70,000 made by the Indian subsidiary to the contractor firm between 2013 and 2014, as detailed in the SEC order.

In response to inquiries, Cognizant issued a statement affirming its commitment to legal compliance and refrained from commenting on ongoing legal proceedings.

The Pune court’s decision marks a pivotal juncture in the unfolding investigation, signifying the commencement of official scrutiny into allegations of corruption and bribery within one of the leading IT companies in the country. As the investigation progresses, stakeholders await further developments regarding the veracity of the allegations and potential legal ramifications for the implicated parties.

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