look news india
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 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 and exemplary damages of $ 112 million to CSC.
The fine imposed was
According to the information given by TCS to the stock markets, the fine of more than $ 194.2 million imposed on it includes compensatory damages of $ 561.5 million, exemplary damages of $ 112.3 million and pre-judicial interest of $ 25.8 million. The total amount of the fine in Indian currency comes to about Rs 1,622 crore.
Why was the fine imposed?
In 2018, TCS got a deal worth $2.5 billion from American insurance company Transamerica. According to this deal, all the facilities were to be provided to 10 million customers of Transamerica 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 will 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 believes that the court's decision to impose a huge fine will not 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 court order. TCS hopes that the decision will come in its favor after the review petition and challenge.
