Former Infosys Exec Faces $24M State Repayment in Indian Probe

For years, former Infosys exec Vishal Sikka, the second highest paid chief executive in India, has been hiding millions of dollars from Indian regulators. Now, Indian officials are at Sikka’s heels with an open…

Former Infosys Exec Faces $24M State Repayment in Indian Probe

For years, former Infosys exec Vishal Sikka, the second highest paid chief executive in India, has been hiding millions of dollars from Indian regulators. Now, Indian officials are at Sikka’s heels with an open investigation for suspicious offshore funds in his name.

Sikka was paid a whopping $35 million during the 2016 fiscal year, bringing his total compensation to $72 million over the five-year period. Sikka left Infosys in August, citing “health reasons” after just over two years at the company. But Indian investigators believe Sikka secretly took out $14 million in insurance and investment that the company would pay to keep him employed and couldn’t explain how it all got moved out of the country, according to Indian Prime Minister Narendra Modi.

Sikka sent checks made out to NuVista Capital from 2015-2017 in which the money would be transferred to offshore accounts to pay his employees. Sikka would then stop sending updates to his bosses at Infosys and then “become elusive with respect to other aspects of his employment relationship at Infosys,” claimed the investigative report. Investigators tracked the transactions to a secret company called NuVista Banc.

In 2017, NuVista was dissolved, leading investigators to believe that Sikka divested himself of any interest in the company and was no longer the beneficial owner of NuVista.

Since June 2017, when Modi promised to go after “black money” overseas, Indian police have collected $650 million from a Singaporean bank account that contained $1.5 billion. But the American investigation has found much more.

According to this report, Sikka flew to sunny Bali on an airliner owned by the Singaporean financing company SP Setia and made four $1 million transfers to a South African oil company with ties to his former employer. Sikka then proceeded to funnel another $400,000 into SP Setia’s Kugoloko Mobile Holdings account.

On July 12, 2017, SP Setia paid a total of $240,000 to Sikka’s company for 50 million shares, allowing the former exec to sell the shares in the black market. The company didn’t tell the IRS or the Mexican Attorney General’s Office about the transaction, according to the report.

The lawyer involved in this transaction did not return calls and an email from Fox News.

This report is at odds with the conclusions drawn by Hindu’s investigative team, Fox News Channel News has learned. Indian investigators have determined that at the same time as Sikka purchased the 50 million shares in his South African company, the South African bank account had notes written to Sikka which paid him for the shares.

Investigative reporters have added $14 million to this story, but attorneys involved in the case believe the American investigation is still far short of figuring out how this money got into his hands.

The current paper trail reveals that not only did Sikka ignore regulatory requirements, but investigators were already well on their way to find the money when the new Sunil Mittal-led conglomerate Infosys went public in 2014.

Infosys set up a shell company for Sikka in Bermuda, then used another connection in Belize with operational ties to HSBC to make a series of dummy transfers to feed rich investors.

India has asserted it doesn’t have the authority to prosecute certain types of U.S. financial transactions. Also, it is on the record that Sunil Mittal has refused to provide information to Indian authorities that may be vital to the investigation.

It’s worth noting that no charges were filed in the American investigation, so Sikka isn’t admitting guilt. He did, however, acknowledge that he created the fake company to hide payments and to promote stock sales, according to Sunil Mittal.

While no charges were filed, Sikka was accused of violating the Foreign Corrupt Practices Act, one of the

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