Wipro seeks 25 crore from Jatin Dalal for joining rival Cognizant
Wipro has initiated legal action against its former CFO, Jatin Dalal, seeking a payment of Rs 25 crore for an alleged breach of contract. The company contends that Dalal violated agreements related to restricted stock units (RSUs) and performance share units (PSUs) granted to him during his tenure as CFO, with conditions prohibiting engagement with competitors, solicitation of customers, vendors, or employees for a year post-employment.
Dalal left Wipro on November 30 and promptly joined Cognizant as CFO the following day. Wipro’s claim rests on the assertion that Dalal’s move to Cognizant violates non-compete and non-solicitation terms. Wipro is also seeking a court order to restrain Dalal from disclosing confidential information.
The court filing alleges that Dalal’s assertion in his undertaking to Cognizant, publicly available as a filing on the US SEC, is “patently false.” Wipro argues that Dalal’s actions demonstrate a blatant disregard for his contractual and fiduciary obligations.
Wipro contends that Cognizant’s significantly higher compensation offer to Dalal, five times his Wipro package, and a sign-on bonus of $300,000 are indications that Cognizant appointed him due to the sensitive information he possesses about Wipro. Dalal, in response, has applied for arbitration, citing clauses in his Wipro contracts allowing for such a resolution. The court is set to rule on this matter on January 3.