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Infosys Defends Land Acquisition Amid Government Scrutiny

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  Published in Politics and Government on Wednesday, December 31st 2025 at 0:39 GMT by Deccan Herald

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Infosys Defends Land Acquisition: Claims Market Purchase Amidst Government Scrutiny & Historical Controversy

Infosys has issued a robust clarification regarding a plot of land near Bengaluru (Bangalore), asserting that it was purchased through standard market transactions, not allocated by the government as previously alleged. The statement comes in response to recent scrutiny and renewed public interest sparked by a Comptroller and Auditor General (CAG) report highlighting discrepancies in land allocation practices within Karnataka decades ago. The controversy centers around a 102-acre parcel in Yeshwantpur, Bengaluru, which Infosys currently utilizes for its campus.

The Origins of the Controversy: A Legacy of Land Allotments & Allegations

The current situation is rooted in a long and complex history of land allotments made by the Karnataka government between 1974 and 1990 to various companies, primarily in the IT sector, aimed at fostering industrial growth. These allotments were often granted on concessional terms – lower prices, extended payment periods, and relaxed usage conditions – intended to incentivize investment and job creation. However, these practices have been repeatedly questioned over the years, with allegations of irregularities, favoritism, and misuse of land arising frequently.

The recent resurgence in attention is due to a CAG report that examined these allotments. While the report did not directly accuse Infosys of wrongdoing, it flagged the Yeshwantpur land as one where the initial allocation process lacked proper documentation and transparency. This prompted speculation and accusations that Infosys benefited from an improper government handout. The report highlighted inconsistencies in records concerning the transfer of ownership and usage rights, raising questions about whether all conditions attached to the original allotment were adhered to.

Infosys's Rebuttal: A Market Transaction Narrative

In its clarification, Infosys vehemently denied receiving any preferential treatment or being granted land by the government. The company maintains that the 102-acre plot was acquired in two phases between 1994 and 1998 through open market purchases from multiple landowners. According to Infosys, they paid prevailing market rates for the land at the time, and all transactions were legally documented and compliant with relevant regulations.

The company’s statement emphasizes that the initial allotment made in 1974 was to a different entity – a joint venture between Tata Consultancy Services (TCS) and Mudras Investment Pvt Ltd. Infosys only entered the picture much later, purchasing the land from these original owners after TCS relinquished its rights. This crucial detail is key to Infosys's defense; they argue that any irregularities associated with the initial 1974 allotment are not attributable to them as a successor entity.

Furthermore, Infosys has provided documentation supporting their claim of market purchase, including sale deeds and payment records. They assert that these documents clearly demonstrate the commercial nature of the transactions and refute allegations of government allocation. The company also highlighted its significant investment in developing the Yeshwantpur campus, creating jobs and contributing to the local economy, arguing that this demonstrates a commitment to responsible corporate citizenship.

Contextualizing the Situation: The TCS Connection & Ongoing Investigations

Understanding the role of TCS is essential for fully grasping the situation. As mentioned, TCS was initially allotted the land in 1974 alongside Mudras Investment Pvt Ltd. However, TCS later exited the venture and relinquished its rights. This transfer itself has been subject to scrutiny, with questions raised about whether TCS fulfilled all conditions associated with the original allotment before relinquishing ownership. The state government is currently investigating these aspects of the land transaction history involving TCS.

The Karnataka government has acknowledged the concerns raised by the CAG report and has initiated inquiries into various land allotments made during that period. While the government’s current investigation focuses primarily on the initial allotment process and the actions of the original allottees (TCS and Mudras Investment), the renewed attention inevitably casts a shadow over Infosys's ownership as well. The government has stated its intention to ensure transparency and accountability in land allocation practices, regardless of who holds the land now.

Implications & Future Outlook

Infosys’s clarification aims to dispel any doubts about their integrity and demonstrate that they acquired the land through legitimate means. However, the controversy underscores a broader issue: the legacy of questionable land allotment practices in Karnataka. The ongoing investigations into these historical transactions could potentially reveal further irregularities and impact other companies involved.

While Infosys insists it is not implicated in any wrongdoing, the situation highlights the importance of meticulous record-keeping and transparency in government dealings with private entities. The company's reputation, while largely unaffected so far, remains vulnerable to public perception until all inquiries are completed and a definitive conclusion is reached. The case serves as a reminder that even companies operating within legal frameworks can be entangled in complex historical controversies stemming from past governmental actions. Furthermore, it reinforces the need for continuous improvement in land management practices to prevent future disputes and ensure equitable access to resources.

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