New Delhi, September 18: The arbitral tribunal has directed Infosys Ltd, India's second largest software exporter, to pay an outstanding severance of Rs 12.17 crore with interest to former Chief Financial Officer (CFO) Rajiv Bansal. “The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr Rajiv Bansal,” Infosys said in a Bombay Stock Exchange (BSE) filing.

Infosys has lost an arbitration over severance package to its former CFO Rajiv Bansal and has been asked to pay outstanding amount adding that the arbitral award is confidential. Infosys said it will take legal advice for further action on the issue.

According to a report by PTI, Bansal’s severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the Bengaluru-based firm. When Bansal left Infosys in 2015, Infosys had agreed to pay him Rs 17.38 crore in severance pay, that equals 24 months of pay.

The filing further added that though the IT company had bona fide disputes, its counterclaims for refund have been rejected. “While the award acknowledges that Infosys had bona fide disputes, its counterclaim for the refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected,” the filing said.

Earlier, the software firm had agreed to pay Bansal a severance amount of Rs 17.38 crore or 24 months of salary, but then suspended payments after he got Rs 5 crore as co-founder N R Narayana Murthy and others objected to the severance package as excessive, a report by PTI said. Following this, the Ex-CFO had dragged his former employer to arbitration to claim the remaining Rs 12 crore of his severance pay.

(The above story first appeared on LatestLY on Sep 18, 2018 02:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).