Wipro seeks Rs 25 cr plus interest from ex-CFO Jatin Dalal for joining Cognizant within 12 months: Report

Wipro-Jatin Dalal row: A news report on Friday suggested that IT major Wipro Ltd's tussle with its former Chief Financial Officer (CFO) Jatin Dalal could get worse. 

Moneycontrol reported that in a lawsuit filed by Wipro in a Bengaluru court in November, it claimed Dalal breached non-compete clause by joining Cognizant within 12 months and has sought damages of Rs 25.15 crore from Dalal, along with 18 per cent interest per annum until the date of payment.

“As per the Agreements, the Defendant is liable to recompense the Plaintiff the total number of RSU granted multiplied by the share price prevailing on the date of the award OR the calculated sum equivalent to the gross remuneration earned by the Defendant during the last 12 (twelve) months of service (as applicable). However, without prejudice and in good faith the Plaintiff has restricted its claim, which is calculated as INR 25,15,52,875/- (Rupees Twenty Five Crores Fifteen Lakhs Fifty Two Thousand Eight Hundred and Seventy-five) along with interest calculated at 18% (eighteen per cent) per annum until the date of payment,” stated the complaing, a copy which was sourced by Moneycontrol. 

Dalal's last date of work at Wipro was on November 30. In his new role at Cognizant, he will take over from Jan Siegmund, who plans to retire in early 2024. Dalal will report to the company's CEO Ravi Kumar S.

In September, Bengaluru-headquartered Wipro said Dalal has resigned to pursue other career opportunities, and Aparna C Iyer was appointed as CFO with immediate effect.

In his new role at Cognizant , Dalal will be overseeing various financial functions globally, such as financial planning and analysis, accounting and controllership, tax, treasury, internal audit, corporate development, investor relations, and enterprise risk management.

Dalal has been with Wipro for over 20 years, his exit is the latest among the slew of top level resignations the firm has seen over the past few months. 

The legal wrangle comes days after the software firm filed a complaint against a former senior executive for violation of a non-compete clause in his employment contract to join Cognizant. 

Mohd Haque, Wipro’s former senior vice president (SVP) and head of healthcare and medical devices for the Americas, joined Cognizant as its SVP and business unit head for life sciences, before the end of his non-compete clause tenure till August 1, 2023.

Wipro reported almost flat consolidated net profit at Rs 2,667.3 crore for the September quarter, trailing street expectations, and projected up to 3.5 per cent fall in revenue in the current quarter on weak global economic outlook and uncertain business environment.

The company had posted a profit after tax of Rs 2,649.1 crore a year ago. The IT services business revenue is expected to contract 3.5 per cent to 1.5 per cent in constant currency terms, the company said, outlining its sequential guidance as Wipro CEO Thierry Delaporte flagged the prevailing uncertainty in business environment, lower discretionary spends, and acknowledged that conversion of order books has indeed become slower.