Phaneesh Murthy: iGATE sacks chief 'for not disclosing relationship'

Phaneesh Murthy, the Indian chief executive of outsourcing firm iGATE, has been sacked "for not disclosing a relationship with a subordinate".

Mr Murthy had "violated iGATE policy" by failing to report this relationship, the firm said in a statement.

The firm said it had also investigated "a claim of sexual harassment" against Mr Murthy and found that he had not violated the firm's harassment policy.

Mr Murthy said the charges against him were "completely baseless".

The Times of India quoted him as saying that he had informed iGATE about his "personal relations" with the female employee.

"If two people in a company have a relationship, the authorities must be informed," he said.

Mr Murthy is one of India's best known IT executives. In 2002, he was sacked from Indian IT firm Infosys on similar charges.

"The board's decision was made as a result of an investigation by outside legal counsel, engaged by the board, of the facts and circumstances surrounding a relationship Mr Murthy had with a subordinate employee and a claim of sexual harassment," an iGate statement said.

The investigation showed that Mr Murthy had violated iGate's policy by failing to report his relationship with the employee, although he did not violate iGate's harassment policy, the statement added.

It said that the investigation was still ongoing.

Mr Murthy has been replaced by interim CEO Gerhard Watzinger.

Although iGate is based in Fremont, California, most of its employees are in India.