BENGALURU: IT major Wipro has demanded Rs 25.15 crore in damages along with 18% interest from its former CFO Jatin Dalal for violating a clause in his employment contract. Dalal has joined the company’s rival Cognizant. The suit was filed by the IT company at the end of November and a civil court in Bengaluru has posted for orders on January 3.
The non-compete clause prevents Dalal from joining a rival company within one year of leaving the company and failing which he would be liable to compensate the company with value of the Restricted Stock Units (RSU) allotted to him or the sum of his total remuneration in the previous 12 months.
Earlier, this newspaper reported that Dalal has filed an application requesting the court to move the matter to arbitration. Dalal joined Wipro in 2002 and became CFO of the company in April 2015 and also assumed additional responsibilities as President beginning in December 2019. Dalal also led Wipro Ventures, Wipro’s $300 million strategic investment arm focused on investing in early- to mid-stage startups.
On September 21, Wipro announced that CFO Dalal has resigned and that Aparna C Iyer has been elevated as its new CFO. A week later, Cognizant announced the appointment of Dalal as CFO, effective in December. Dalal is reporting to Ravi Kumar S, Cognizant’s CEO. The company also said that Dalal will oversee, among other responsibilities, Cognizant’s worldwide financial planning and analysis, accounting and controllership, tax, treasury and internal audit, corporate development, investor relations and enterprise risk management functions.
Wipro has seen many top-level exits in recent times. The company has also filed a complaint against Mohd Haque, a former senior vice president and head of healthcare and medical devices- Americas, alleging a violation of the non-compete clause in his employment contract. He moved from the company before the expiration of the non-compete clause that was set until August 1, 2023. He also joined Cognizant recently.
Clause prevents Dalal joining rival in 1 year
Suit was filed by Wipro at the end of November and a civil court in Bengaluru has posted for orders on January 3. The non-compete clause prevents Dalal from joining a rival within one year of leaving the company and failing which he would be liable to compensate the company with value of the Restricted Stock Units (RSU) allotted to him