India’s largest IT services company TCS on Sunday said it has fired 16 employees and barred six vendors in connection with a “recruitment scam”.

“Our investigation found 19 employees to be involved…16 employees have been separated from the company for code of conduct violations, and three employees have been removed from the resource management function,” the company said in a late evening statement.

It also added that six vendors, their owners and affiliates have been “debarred” from doing any business with TCS.

In late June, reports had surfaced of a “recruitment scam” at the largest software exporter, wherein vendors tasked with some functions were alleged to have indulged in malpractices in collusion with TCS staffers.

The allegation came to light within weeks of K Krithivasan taking charge as the company’s chief executive and was the first major challenge faced by him.

“The issue relates to breach of the company’s code of conduct by certain employees and vendors supplying contractors,” the statement said.

TCS said the investigations found that none of the company’s key managerial personnel were involved, and added that this is not a fraud against the company. It does not have any financial implications either, it added.

In the statement, TCS said it will continue to enhance governance measures, including regularly rotating personnel in the resource management function and enhancing analytics on supplier management.

It said the company expects all stakeholders and employees to adhere to the Tata code of conduct, and added that it has zero tolerance for unethical conduct.

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