Sex, Infosys and a lawsuit

Bangalore: Did Infosys Technologies mislead the authorities and investors by keeping under wraps the case filed by Reka Maximovitch against Phaneesh Murthy, the former director and head of sales, marketing, communications and product services of Infosys, for sexual harassment and 'stalking'?

Before probing the issue let's look at the ground realities. American courts award millions of dollars as compensation to the aggrieved person if a sexual harassment charge is found valid.

Murthy, the highest-paid employee of Infosys (he used to take home a cool Rs 1.91 crore every year), abruptly resigned from Infosys last week to “devote time and attention to pursue a successful defence of the suit.“

Infosys, in its filings to the US Securities Exchange Commission (SEC) on 8 May 2002, had categorically said the company - or any of its directors, senior executive officers or affiliates - is not party to any material or legal proceedings.

But it now transpires that Maximovitch, Murthy's former executive assistant, had filed a case against Murthy and Infosys as early as 17 December 2001. Earlier that year she obtained two restraining orders - one in January and the other in June - from a US court against Murthy.

An India Today report says Maximovitch was fired from her job in December 2000. And between October 1999 and December 2000 she was pressurised by Murthy to have a sexual relationship with him. Maximovitch further alleges that Murthy “stalked“ her by tracing her new employer and offering to buy out the company on behalf of Infosys.