The country’s leading IT firm TCS has suffered a loss of crores. An American court has imposed a fine of 1620 crores on the company. TCS feels that this decision of a huge fine by the court is not going to have any significant financial impact on it. In such a situation, let us know why the American court has imposed a fine on TCS.
The country’s leading IT firm Tata Consultancy has suffered a setback of crores. An American court has imposed a fine of crores of rupees on the Tata Group’s IT company. The company itself has given this information. In fact, an American court has imposed a fine of 194 million dollars i.e. 1620 crores on TCS for misusing the trade secrets of American IT service firm DXC (formerly known as CSC). The court has asked TCS to pay compensatory damages of 56 million dollars and exemplary damages of 112 million dollars to CSC.
This is how the fine was imposed
According to the information given by TCS to the stock markets, the fine of more than 194.2 million dollars imposed on it includes compensatory damages of 56.15 crore dollars, exemplary damages of 11.23 crore dollars and pre-judgment interest of 2.58 crore dollars. The total amount of fine in Indian currency comes to about Rs 1,622 crore.
Why was the fine imposed?
In 2018, TCS got a $2.5 billion deal from US insurance company Transamerica. According to this deal, all the facilities were to be provided to Transamerica’s 10 million customers on a single platform. This deal was canceled in June last year. Then the deal was canceled citing microeconomic conditions.
TCS will challenge the order
However, the Indian IT company says that it has strong grounds to challenge the court’s decision. TCS said that it is going to challenge the decision of the District Court in the appropriate court and file a review petition. TCS said that it has received the relevant order of the court on June 14, 2024.
TCS started this preparation
TCS feels that this decision of the court to impose a huge fine is not going to have any significant financial impact on it. The company is preparing to take necessary steps to protect its interests and face the legal challenges arising from this order of the court. TCS hopes that after the review petition and challenge, the decision will come in its favor.
