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Wipro Chairman Azim Premji and Senior Officials Exonerated by Allahabad High Court

The Lucknow bench of the Allahabad High Court has quashed criminal proceedings against Wipro chairman Azim Premji and other senior company officials, initiated in connection with alleged violations of labour laws. The court's decision was announced on Wednesday.

The case originated from a complaint filed by the labour department, alleging non-compliance with labour laws at Wipro's Ghaziabad office. Acting on the complaint, a local magistrate court issued a summons to Premji and a few other company officials, following which the order was challenged before the high court.

The high court, in its judgment, observed that in matters relating to technical violations of labour laws, top executives, such as a company chairman, cannot be held criminally liable unless there are specific allegations showing their direct involvement. The court noted that the complaint failed to specify the chairman's role in the day-to-day functioning of the company or in ensuring labour law compliance.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The court further held that the magistrate had not properly examined the factual aspects of the case before issuing the summons. As a result, the high court set aside the summons issued by the magistrate court in the matter. The order was passed by Justice Jafeer Ahmad on a petition filed by Premji and others.

Investor Takeaway

No material impact on Wipro's business operations.

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