TCS say no recruitment fraud; issue relates to breach of Code of Conduct

Tata Consultancy Services (TCS), India’s largest IT services player, in a statement said that the media report suggesting the involvement of senior executives in bribes for jobs from recruitment firms relates to a breach of the company’s Code of Conduct by certain employees and vendors. It also said that there was no financial impact and does not involve any fraud.

TCS made these clarification to the exchanges in a filing, as a media report said that senior executives involved in hiring thousands of personnel took bribes from staffing firms. The story also stated that TCS’s Resource Management Group (RMG) head has been accepting commissions from staffing firms.

However, TCS in a statement said, “The recruitment activities in TCS are not handled by the Resource Management Group (RMG) as alleged, therefore the reference to the alleged scam in the recruitment process is incorrect. RMG is responsible for the allocation of available resources to various projects and in case of any shortfall, fill such requirements through contractors. The complaint referred to in the article relates to the hiring of such contract resources employed by the contractors.”

The statement further stated that on receipt of the complaint TCS launched a review to examine the allegations in the complaint.

“Based on the review: (i) this does not involve any fraud by or against the Company and no financial impact; (ii) the issue relates to a breach of the company’s Code of Conduct by certain employees and vendors providing contractors, and (iii) no key managerial person of the Company has been found to be involved,” said the statement.

The incident however, as shaken up the staffing industry in the country and brought up an issue that the industry has been dealing for some time. The Indian Staffing Federation said in a statement: “We urge all stakeholders, including corporates and the Government, to consider engaging staffing companies that prioritize ethical employment practices and regulatory compliance. “

“India’s staffing workforce plays a pivotal and irreplaceable role across various sectors, significantly contributing to India's economic progress,” said Lohit Bhatia, President of, Indian Staffing Federation.

TATA Consultancy Services ( TCS )