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Country’s largest IT company TCS fined Rs 1,620 crore, fined by US court

Sagar Patel

By Sagar Patel

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Country’s largest IT company TCS fined Rs 1,620 crore

Tata Consultancy, the country’s leading IT company, has taken a hit worth millions of dollars. A US court has imposed a fine of millions of rupees on Tata Group’s IT company. The company itself has this information. In fact, a US court has imposed a fine of $194 million i.e. Rs 1.62 billion on TCS for misusing the trade secret of US IT services company 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.

fine imposed in this way

According to the information provided by TCS to the stock exchanges, the fine imposed on it is more than $194.2 million, which includes compensatory damages of $561.5 million, exemplary damages of $112.3 million and preventive interest. for $25.8 million. The total amount of the fine in Indian currency amounts to approximately Rs 1,622 million.

Why was the fine imposed?

In 2018, TCS secured a deal worth $2.5 billion with US insurance company Transamerica. Under this agreement, all facilities would be provided on a single platform to 10 million Transamerica customers. This agreement was canceled in June of last year. Later this agreement was canceled citing microeconomic conditions.

TCS will challenge the order

However, the Indian IT company says it has strong grounds to challenge the court’s decision. TCS said it will challenge the District Court’s decision in the appropriate court and file a review petition. TCS said it received the relevant order from the court on June 14, 2024.

TCS started preparing for this.

TCS believes that the court’s decision to impose a huge fine will not have any significant financial impact. The company is preparing to take the necessary steps to protect its interests and address any legal challenges arising from this court order. TCS hopes that after the review and challenge petition, the decision will be in its favor.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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