Companies & Sectors
Infosys appoints Vishal Sikka as CEO and MD, Murthy to step down

With Sikka, the former SAP executive, set to take over the reins, Infosys founder Narayana Murthy is going back to his 'vanaprasthashram'. Kamath would become non-executive chairman, while Pravin Rao, who was one of the contenders for the top post, would become new COO of Infosys

Infosys Ltd, the country's second largest software company, on Thursday appointed Vishal Sikka, former executive board member of SAP AG, as its new chief executive and managing director. Sikka is the first non-founder or hired from outside CEO of Infosys. At the same time, its executive chairman NR Narayana Murthy and executive vice chairman S Gopalkrishnan would 'voluntarily' step down from 14th June, the company said. According to reports, appointment of Sikka and other re-shuffles would help boost the employee morale, which had taken a hit over past 12-months following exodus of top executives from Infosys that started since Narayana Murthy's return at the helm in June last year.


Both Narayana Murthy, who returned to the company last year as executive chairman and additional director, and Gopalkrishnan would continue to be on the company board till 10 October 2014 for smooth transition of responsibilities. Narayanan Murthy would once again become Infosys' chairman emeritus post 11th October.


Veteran banker KV Kamath, who stepped down from his position as chairman of the board in June 2013 to make space for Narayana Murthy, would also become non-executive chairman of Infosys post 11 October 2014, the company said.


SD Shibulal, current CEO and MD of Infosys would step down from his posts and from the company board on 31 July 2014. Srinath Batni, whole time director of the company would also step down from 31st July, Infosys said.


Infosys said, it also decided to dissolve the executive chairman's office from 14th June. Narayan Murthy's son Rohan, who was brought in the fold in June last year as his father's executive assistant, would also leave Infosys on 14th June.


In a regulatory filing, Infosys said Sikka would be inducted as whole-time director on its board and will take over from current CEO SD Shibulal, one of the engineers who founded the company, on 1st August. The company also elevated UB Pravin Rao, who was also in the race for the top post, as chief operating officer (COO) from 14th June.


Narayana Murthy, commenting on the appointment of Sikka as new CEO and MD, said, "Vishal (Sikka) brings valuable experience as a leader of a large, global corporation. His illustrious track record and value system make him an ideal choice to lead Infosys."


Earlier last month, BG Srinivas, the highest paid executive, resigned from Infosys, making it the 10th high-profile exit from the company since the return of NR Narayana Murthy in June 2013. Srinivas was also one of the main contenders to become Infosys' CEO. Srinivas was also the highest paid executive of the company in 2013-14. During the year, he received a total compensation of $1.3 million (about Rs7.8 crore).


Before Srinivas, nine senior members including V Balakrishnan, Mohandas Pai and Vemuri had resigned from the company after a fairly long spell. Last year in December, Balakrishnan, who was head of Infosys BPO, Finacle, and India Business Unit as well as chairman of Infosys Lodestone and Subrahmanyam Goparaju, senior vice president and a member of Infosys' executive council resigned.


In July 2013, Infosys' global sales head Basab Pradhan quit. In August, Ashok Vemuri, the company's global manufacturing head joined rival iGate as chief executive. In November, Stephen Pratt, who co-founded Infosys consulting also stepped down.


Following the announcement, Infosys shares surged 5.5% to Rs3,236 in early trade on the BSE. However, it pared gains later and was trading in the red.


At 10.43am, Infosys was trading 1.4% down at Rs3134 on the BSE while the 30-share benchmark Sensex was marginally up at 25,541.


Housing Society Issues

1.    Am I liable to pay maintenance charges for a period where the possession letter was issued by the builder but I refused to take the keys as the flat was not ready to move in?

2.    What actions can I take if the municipal tax is not being paid by the builder?

3.    What is the procedure to get the share certificates issued for the property?

4.    What are the documents that I will need to collect from various sources to be the legal owner of the flat?

5.    How do I proceed to make a Will for my flat and what are the criteria to make a Will?

LRC’s Reply:  (1) & (2) If your building has not received an occupancy certificate (OC) from the concerned municipal authority, the builder cannot ask you to pay any dues for your flat, such as taxes or cooperative housing society’s (CHS’s) maintenance (if the CHS is formed before completion of construction of the building), under Section 6 of Maharashtra Ownership Flats Act, 1963 (MOFA).

It is the builder who has to pay all the applicable taxes, like municipal taxes, property tax, ground rent, water and electricity expenses, and any other expenses, as applicable, before he gets OC, as per MOFA.
For asking you to pay taxes and dues of the flat, which has not received OC, you can make a complaint with the consumer forum or in a competent civil court for violation of Section 6 of MOFA, 1963, against the builder.

(3) & (4) Once your building gets the OC, and 60% of the flats in the building are sold, the resident buyers of the flats can form a CHS, following which share certificates of your flat will be issued by the CHS.

The builder does not lose his rights to sell the unsold flats to buyers independently, even after the CHS is registered.

If the builder does not allow you to form a CHS when 60% of the flats are sold,  you can make a complaint to the consumer forum or to a competent civil court, for violation of Section 11 of MOFA, 1963.

(5) If you get possession of your flat and the share certificate is issued, as stated above, you can make a Will for your flat. This Will has to be attested by two witnesses who are not beneficiaries of the properties stated in your Will. As such, a Will need not be registered, but if it is registered with the sub-registrar of assurances, it will carry more weight.

Also, it is recommended that your Will should be certified by a physician whose education is not below MBBS or BAMS, stating that you were of sound mind at the time of signing of your Will, and that you were not under the influence of any intoxicants or drugs.

Have a legal question? Try  Moneylife Foundation’s Legal Resource Centre. Check out and register at


Issue with Cibil

In the instance of a consumer loan which has not been repaid for 3-4 years, which shows up in the CIBIL database. The issue is that the bank sent the details of only the principal amount instead of the total outstanding amount. Why is the bank not sending details of the total outstanding amount including the late fees and interest components to CIBIL?

LRC’s Reply: First, it is necessary to understand that CIBIL is not your lender; it only displays an individual’s credit-worthiness depending on his/her financial transactions. Therefore, to know your liabilities and outstanding at any given time, you need to approach your lender and not CIBIL. Secondly, all lenders send their respective data to CIBIL or any other credit bureau, on a periodic-cycle basis and not in real time. Therefore, it is not possible for the lenders and credit bureaus to show the ‘late fee and interest’ components in real time as
these keep changing with the time/ tenure.

Have a legal question? Try  Moneylife Foundation’s Legal Resource Centre. Check out and register at


NOTE: If you are facing similar issue, you may want to get help from Moneylife Foundation's free Credit Helpline



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