In a major development, the Nascent Information Technology Employees Senate (NITES) has lodged a formal complaint with the central Ministry of Labour and Employment against Hyderabad-based IT firm Brane Enterprises Private Ltd. The complaint alleges non-payment of pending salaries amounting to Rs 17.55 crore, along with serious financial irregularities.
Allegations of Unpaid Salaries and Mismanagement
According to NITES, Brane Enterprises has failed to pay its employees’ salaries despite the company reporting a net worth of Rs 58 crore for the financial year 2022-23. The union further claimed that the company has been deducting provident fund (PF) contributions and tax deducted at source (TDS) from employees’ salaries without depositing these amounts with the relevant government authorities, violating the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and the Income Tax Act, 1961.
Connections to Satyam Scandal
The union also highlighted Brane Enterprises’ ties to Ramalinga Raju, the former chairman of Satyam Computers, who was convicted for one of India’s largest corporate frauds. NITES claimed that Raju has been directly influencing the company’s operations. Additionally, the company’s claim of leading AI innovation is under question, with a patent listed under Raju’s name.
Mass Layoffs and Employee Grievances
Brane Enterprises reportedly hired over 1,000 employees earlier in 2024. However, from April onwards, salary payments were repeatedly delayed. In August, the company laid off over 1,500 employees across Bengaluru, Hyderabad, and other regions. Employees who requested written confirmation regarding salary payments were allegedly threatened with termination or given evasive responses.
NITES Demands Government Intervention
NITES has called upon the Ministry of Labour and Employment for immediate intervention to ensure employees receive their rightful wages. The union also demanded legal action against those responsible for the financial misconduct.
This case marks yet another instance of corporate malpractice, raising concerns about employee welfare in the Indian IT sector. As investigations proceed, all eyes will remain on the government’s response and the accountability measures that follow.
