Rs 1600 Crore Penalty On TCS For Using Client's Software To Build Its Own Platform


Sheetal Bhalerao

Sheetal Bhalerao

Jun 18, 2024


On June 14, Tata Consultancy Services (TCS), announced that they have received an adverse judgment from the United States District Court, Northern District of Texas, Dallas Division.

Rs 1600 Crore Penalty On TCS For Using Client's Software To Build Its Own Platform

How Did This Happen?

According to India’s largest IT services exporter, “…we hereby inform you that the Company has received an adverse judgment passed by United States District Court, Northern District of Texas, Dallas Division.” 

This was informed by the Indian IT giant stock exchange filing.

This all started when Computer Sciences Corporation (CSC) now DXC Technology Company (DXC) brought  this case to light alleging TCS misappropriated its trade secrets.

In response to this, the United States District Court ruled that TCS is liable for a total of $194.2 million.

This amount includes $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest. 

It doesn’t end here as besides this, the US Court has also imposed certain injunctions and other reliefs against the company.

Further, TCS said, “The court ordered that the company is liable to CSC for USD 56,151,583 in compensatory damages and USD 112,303,166 in exemplary damages. The court also assessed that the company is liable for USD 25,773,576.60 in prejudgment interest through June 13, 2024.”

Strong Arguments To Counter The Ruling

While talking about their significant judgment, TCS noted that the company has strong arguments to counter the ruling and plans to defend its position through a review petition or an appeal to the appropriate court. 

It received the court order on June 14, 2024.

Further assuring TCS claimed that the judgment will not have a major adverse impact on its financials and operations. 

They were also informed about taking the necessary steps to protect its interest. 

The IT service provider also plans to address the legal challenges presented by this ruling.

Adding, “The company believes that it has strong arguments in the matter and intends to defend its position through review petition/appeal to the appropriate Court.”


Sheetal Bhalerao
Sheetal Bhalerao
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