India’s No.2 software services exporter, Infosys, is probing whistleblower complaints that its top two executives engaged in “unethical practices” to boost short-term revenue and profit.

IT major saw its worst day on the bourses in over six years on Tuesday as investors pulled out their funds over recent corporate governance issues. Its scrips settled nearly 17 per cent lower despite assurances from the company top brass. The fall wiped out Rs470 billion ($6.6 billion) in market capitalisation, which was at Rs2.8 trillion. Chief Executive Salil Parekh, who took charge in 2018, has bypassed reviews and approvals for large deals for fear of reduced profits having a negative impact on its shares, the letter signed by “ethical employees” said.

“Several billion dollar deals of last few quarters have nil margin,” said the Sept.20 letter, a copy of which was reviewed by Reuters, which implies the company did not actually profit from the deals.

Bengaluru-headquartered Infosys, considered India’s IT bellwether, also did not take into account expenses such as visa costs to boost profit, while it was pressured not to recognize reversals of a $50 million upfront payment in a contract, which is against accounting practices.

“CEO is bypassing reviews and approvals and instructing sales (team) not to send mails for approval. He directs them to make wrong assumptions to show margins,” the letter said, adding that Chief Financial Officer Nilanjan Roy prevents employees from highlighting issues around large deals in presentations to the company’s board.

Reuters could not independently verify claims made in the letter.

Parekh did not respond to Reuters’ request for a comment.

Infosys Chairman Nandan Nilekani said in a statement on Tuesday that the complaints were placed before the audit committee and the non-executive members of the board. Parekh and CFO Roy have been recused from the matter to ensure an independent investigation, said Nilekani, who is credited for growing Infosys’ annual revenue by four-fold to $2 billion during his 2002-2007 tenure as CEO.

The allegations could start a fresh storm at Infosys, which just two years ago endured a shake-up that saw its then CEO Vishal Sikka leave after a public battle with founders.

Reuters