Phaneesh Murthy sacked by iGate after sexual harassment probe

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In 2004,Murthy was forced to quit India8217;s second biggest software exporter Infosys Ltd following a sexual harassment lawsuit,which was settled out of court.

iGate,which in its annual report stated that the exit of CEO would impact business,in a statement today said its board engaged outside legal counsel to investigate and found Murthy8217;s failure to disclose relationship with a subordinate.

The probe,which is continuing,has not found any violation of the company8217;s harassment policy,the Fremont,California-based company said.

Murthy,who holds over 6.55 lakh shares in iGate,in a conference call named the woman with whom he said he had a relationship 8220;over the last few months8221; but claimed he had informed the firm about it and there was no violation of any policy.

8220;I do believe the charges of sexual harassment are incorrect and pursuant to the relationship I had with her over the past few months. I do not believe,I have violated any company policy8230; I had spoken to the Chairman iGate about it,8221; he said. 8220;It was not sexual harassment,it was a few months of relationship.8221;

iGate said the investigation has reached the finding that Murthy8217;s failure to report this relationship violated the company8217;s policy,as well as Murthy8217;s employment contract.

8220;The board deliberated extensively on this matter,8221; iGate co-founder and co-chairman Sunil Wadhwani said.

8220;We recognise the significant contributions Murthy has provided over the past ten years in helping to establish iGate as a leader in the IT industry8230; However,as a result of this violation of iGate policy,we asked Murthy to step down.8221;

2NDLD IGATE 2 LAST

8220;Everything is a regret,8221; Murthy said of the iGate situation. 8220;The entire ordeal is a regret.8221;

US-based iGate in a statement said: 8220;The Board8217;s decision was made as a result of an investigation by outside legal counsel,engaged by the Board,of the facts and circumstances surrounding a relationship Mr Murthy had with a subordinate employee and a claim of sexual harassment.

8220;The investigation,which is ongoing,has reached the finding that Mr. Murthy8217;s failure to report this relationship violated iGATE8217;s policy,as well as Mr. Murthy8217;s employment contract. The investigation has not uncovered any violation of iGATE8217;s harassment policy.8221;

In a filing to the US Securities and Exchange Commission in March,iGate had said 8220;Our success is highly dependent on the efforts and abilities of our Chief Executive Officer,Phaneesh Murthy and our senior management team. These personnel possess business and technical capabilities that are difficult to replace.8221;

Meanwhile,speaking to reporters in a concall,Murthy said 8220;It was not sexual harassment,it was a few months of relationship.8221;

Murthy,however,he did not disclose any details about the relationship.

8220;I learnt that she filed charges claiming sexual harassment,which was sent to the company. I do believe the charges are incorrect and pursuant to the relationship I had with her over the past few months. I do not believe,I have violated any company policy8230;I had spoken to the Chairman iGate about it,8221; he said.

On being asked if he is being targeted,he said 8220;without question,it is a case of extortion. Ever since,the first case was made public,people feel it is an easy way of making money.8221;

Murthy said that the woman is being advised by the same lawyer and law firm,which handled the earlier sexual harassment case against him in 2002-03.

On company8217;s statement of conducting a probe and he being asked to present his case,Murthy said 8220;I have not been charged in anyway and I have not received any letter yet.8221;