US Seeks Testimony from L&T Chair in Cognizant Bribery Investigation Involving Indian Officials

The US government is seeking testimony from S.N. Subrahmanyan, the chair of Larsen and Toubro Ltd (L&T), as part of an investigation into whether Cognizant Technology Solutions used L&T to make illegal payments to Indian government officials between 2013 and 2015. At the time, Subrahmanyan was in charge of L&T’s construction business, which is suspected of bribing officials to speed up approvals for Cognizant’s office projects in Chennai and Pune.

This request comes shortly after Subrahmanyan took over as L&T’s chair in October 2023, following the long tenure of A.M. Naik. The US government has also asked for statements from four other L&T employees and two former Cognizant employees as part of the investigation.

India’s Ministry of Home Affairs initially rejected a formal request from the US State Department last year. Now, the US Department of Justice (DoJ) is seeking help through the Mutual Legal Assistance Treaty (MLAT) between the two countries. The DoJ’s request was made in January and revealed in July during court proceedings in New Jersey.

The case centers around allegations that former Cognizant executives approved $3.64 million in bribes to Indian officials to speed up the construction of the company’s campuses. Cognizant had already agreed to pay $25 million in 2019 to settle related charges with the US Securities and Exchange Commission. However, the DoJ charged two former Cognizant executives, Gordon Coburn and Steven Schwartz, with authorizing these payments.

Both executives deny the allegations, but the DoJ is using evidence provided by Cognizant, including documents and interviews, to build its case. Coburn’s attorney argued that the trial should be postponed until February 2025 to allow time to secure testimonies from Indian witnesses.

A New Jersey judge agreed to delay the trial until March 2025, giving the US government until November 25 to respond about the MLAT request. The trial is expected to start immediately after jury selection in March.

Subrahmanyan, who has worked at L&T since 1984 and became chair last year, was interviewed by US officials in 2018. He claimed he did not remember any discussions about improper payments during the relevant period. L&T conducted its own internal investigation and found no evidence of wrongdoing by its executives.