IT major Cognizant has initiated internal investigations into payments relating to its facilities in India, particularly those that are said to be in violation of the US Foreign Corrupt Practices Act. This includes the company’s development centre at Keeranatham near Coimbatore.
“The investigation is being conducted under the oversight of the Audit Committee, with the assistance of outside counsel, and is currently focused on a small number of company-owned facilities,” Cognizant had said in a filing with the SEC.
Local Planning Authority (LPA) sources here conceded that the IT major sought and got a “conditional approval” for the building at Keeranatham in 2008.
“The conditional approval was basically because the facility did not have the requisite environmental clearance and fire approval,” the LPA source said. “There is no deviation in structure, but it has to furnish certain approvals, which we have not got till date. We have sent them a notice,” the source said.