Category: Counterpoint

Mohandas Pai, Chairman of Aarin Capital and former CFO of Infosys, has sharply criticized the state of entry-level salaries in India's IT sector. In a video interview to the Hindustan Times, Pai accused the industry of exploiting freshers, despite boasting about record profits and paying top executives exorbitant salaries.

“They're exploiting the entry level. I've been talking about them exploiting people because they [have] surplus labor, desperate young people who are getting educated and want to work. It is very unethical, not correct, and against what the industry stands for,” Pai said.

Pai pointed out that while CEO salaries have seen massive hikes, entry-level salaries have remained nearly stagnant over the past decade.

Freshers who earned ₹3.25 lakh annually in 2011 now make only ₹3.50-₹3.75 lakh in 2024—a mere 15% increase over 13 years. In contrast, CEO salaries have risen by 50-60% in just the last five years, with the median pay of top IT executives surging 160% to reach ₹84 crore annually, Pai had stated earlier.

“You give the CEO ₹50 crore, ₹60 crore, ₹70 crore, whereas seven to eight years back they were getting ₹8-10 crore. Now you don't want to pay freshers? I think it's terrible. This is not the way for the industry to lead the country,” Pai remarked.

He further argued that the industry has been exploiting freshers for over a decade, with stagnant wages disproportionately affecting the bottom 50% of employees.

Despite concerns over job losses due to AI, Pai remains optimistic about India's role in global tech hiring. He predicts that more technology jobs will come to India as companies shift AI-first strategies.

“If you want to do AI in Western markets, you need data scientists who are not available there. So, the work will come to India,” he stated.

Pai believes that job losses will be more pronounced in the West, where companies are paying $150,000 per employee but can replace them with AI at a fraction of the cost. In India, productivity gains from AI in service companies are expected to be around 10-12% annually, leading to more projects and spending.

With economic certainty improving and global spending set to rise, Pai forecasts better hiring prospects in the coming years.

The Adani Group, led by Gautam Adani, has clarified that the reports of Sri Lanka officially revoking a power purchase agreement with the Indian conglomerate due to corruption allegations are inaccurate and deceptive.

Early in the day news agency AFP reported that Sri Lankan President Anura Kumara Dissanayake's administration conducted an investigation into the Adani group's local projects following allegations of bribery and concealing payments from investors by the US on November 19, 2024.

Clarifying the news report, the Adani Group issued a statement: "Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the PPA has not been revoked. The Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies. Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth."

Adani Green Energy's stock experienced a decline following the news of Sri Lanka's termination of the power purchase agreement, reaching a daily low of Rs 1,008. Shares of Adani Green Energy were down by 0.93% and closed at Rs 1,011.95.

In May 2024, the former government in Sri Lanka had reached a deal to purchase electricity at a rate of US$0.0826 per kilowatt from an Adani wind power facility planned for construction in the northwest region of the island in the country.

Opposition to the agreement came from activists who believed that smaller renewable energy projects were able to provide electricity at a significantly lower cost compared to Adani's proposal.

Furthermore, the planned development of Adani's 484-megawatt wind power plant in the coastal areas of Mannar and Pooneryn is currently being challenged in the Supreme Court on grounds of environmental concerns.

The National Human Rights Commission (NHRC) has criticised labour officials for not thoroughly investigating allegations of employment discrimination at Foxconn's iPhone assembly plant in India. The watchdog has instructed federal and Tamil Nadu state officials to reassess Foxconn's hiring practices after reports revealed the exclusion of married women from assembly line jobs, a ban reportedly eased during peak production periods. The NHRC's directive comes as Foxconn and Apple aim to expand manufacturing in India, aligning with Prime Minister Narendra Modi's vision of boosting electronics production in the country.

According to a report in Reuters, labour officials conducted a visit to the Foxconn plant in July but did not release their findings publicly. Documents that it reviewed showed that Tamil Nadu labor officials informed the NHRC that 6.7 per cent of the 33,360 women employed at the plant were married, without specifying if they worked on the assembly line. The officials claimed that the recruitment of female employees from six districts "makes it clear that a large number of female employees have been hired by the company … without any discrimination." However, the NHRC noted that the officials did not address the core issue of discrimination against married women.

The NHRC stated that labor officials "filed their reports in a routine/casual manner" and failed to scrutinise Foxconn's hiring documents. The commission emphasised that "the presence of (a) certain number of female employees at present does not answer the question (of) whether the company had actually discriminated against the married women at the time of recruitment," highlighting that officials were "apparently silent in this regard”.

The commission has ordered a "thorough investigation" to be conducted within four weeks, reflecting its powers akin to a civil court to recommend remedial actions, including compensation. Neither the state nor federal labour departments responded to requests for comments on the NHRC's assessment. The NHRC's intervention aligns with the government's assertion that India's Equal Remuneration Act prohibits discrimination in recruitment based on gender.

Infosys CEO Salil Parekh has responded to allegations of toxic work culture raised by a former employee, whose viral LinkedIn post sparked widespread debate. "Within Infosys, we have a clear approach to ensure everyone is treated fairly. We hold ourselves to high standards," Parekh said during a recent conference call.

Bhupendra Vishwakarma, a former Senior System Engineer, raised systemic flaws, regional bias, and an unhealthy work environment with the firm. Despite being the sole breadwinner for his family, he resigned without another job offer. “For three years, I worked hard, met expectations, and contributed to the team, yet saw no financial acknowledgment of my efforts,” he wrote. 

He described how his promotion came with added responsibilities but no salary increase, leaving him disillusioned.

Assigned to a loss-making account, Vishwakarma described limited opportunities for salary hikes or career advancement. “The account I was assigned to was a loss-making one, as admitted by my manager. This directly impacts salary hikes and opportunities for career growth. Staying in such an account felt like professional stagnation, with no light at the end of the tunnel,” he wrote, adding that the lack of direction eventually forced him to leave.

Vishwakarma’s most serious accusation involved the high-pressure environment at Infosys. He claimed that constant escalations, unrealistic client demands, and a lack of support created chronic stress. “This pressure trickled down, creating stress at every level of the hierarchy. It felt like a constant state of firefighting, with no room for personal well-being,” he explained. 

Attrition within the company was another key issue Vishwakarma highlighted. His team’s size reduced from 50 to 30, yet the management chose to redistribute the workload rather than hire replacements. “Instead of hiring replacements or providing support, the management took the easy route—overburdening the existing team without compensation or recognition,” he stated.

He alleged that Infosys prioritized client demands over employee welfare, contributing to a toxic culture.

Hindenburg Research, the US-based short seller that had targeted several business entities including the Adani Group, is going to be disbanded. In a recent update on the Hindenburg website, Founder Nate Anderson confirmed that Hindenburg Research will be disbanded. 

Nathan Anderson announced that the closure of the firm was a strategic decision made after the successful completion of their investigative projects. In a personal statement, Anderson detailed the achievements of Hindenburg Research and the rationale behind ending its operations. He disclosed that the shutdown had been in the works for several months, with the team finalising their last investigations.

In a personal statement, Anderson revealed that a British DJ performing in Bali greatly influenced him during a crucial period. He encouraged his followers to listen to Lee Burridge's music and shared a video of the DJ performing at Omnia Bali for Cercle in Indonesia. Anderson linked a video of the DJ playing music “at Omnia Bali in Indonesia for Cercle”. 

He wrote: "If you are chasing something you think you want or need, or are doubting whether you are enough, take a minute and give this a listen. It had a big impact on me at a pivotal time," he wrote as a postscript to his lengthy goodbye note on the Hindenburg Research website with a link to Burridge's video on YouTube.

An hour-long DJ set included a piece from musician Rowee & Lazarusman's 'Brightness'. The lyrics go, “Define yourself! Know who you are! Define!”

Born in November 1968, Lee Burridge is a prominent British DJ and producer who made a significant impact on the club scene in Hong Kong during the 1990s, according to information sourced from Wikipedia. He played a vital role in the establishment of the renowned nightclub Neptune's. Burridge went on to join the esteemed Tyrant Soundsystem in England, alongside DJs Craig Richards and Sasha, and has been a regular performer at the famous Burning Man event. In 2011, he founded the All Day I Dream label, which eventually evolved into a successful touring festival. His latest venture includes the launch of the spin-off record label All Day I Dream in Waves in 2021.

Anderson founded Hindenburg with only a small amount of capital and without traditional financial expertise, citing the venture as both fulfilling and challenging. At 40 years old, Anderson gained international attention in January 2023 by releasing a report that accused Adani of orchestrating what was labeled as the biggest scam in corporate history. This report caused a significant $150 billion drop in Adani Group's stock prices. At the time, Adani was ranked as the fourth wealthiest individual in the world according to the Bloomberg Billionaires Index. 

The stocks of Adani rebounded after some time. Subsequently, the Supreme Court cleared the Adani group of any wrongdoing, stating that unverified reports from organizations like the OCCRP cannot be considered as valid evidence.

Following this event, Hindenburg Research also issued reports on Block Inc., owned by Dorsey, and Icahn Enterprises, owned by Icahn

Adani Group CFO Jugeshinder Singh shared a cryptic remark as news broke of Hindenburg Research shutting down operations. “Kitne Ghazi Aaye, Kitne Ghazi Gaye,” he wrote on X, as Adani Group stocks surged up to 9%.

Hindenburg Research, the US-based short-seller known for targeting major business entities, including the Adani Group, on Thursday announced its disbandment. Founder Nate Anderson stated, “I have made the decision to disband Hindenburg Research. The plan has been to wind up after we finished the pipeline of ideas we were working on.” Anderson clarified that the decision was not prompted by threats or personal issues.

The move comes days before Donald Trump’s anticipated inauguration and follows heightened scrutiny from a prominent Republican lawmaker. Congressman Lance Gooden recently criticized the US government’s probe into Adani Group companies, calling it a move that could harm America’s global alliances.

Adani Group stocks rallied strongly on January 16, with Adani Power leading at a 9% increase to ₹599.90. Adani Green Energy jumped 8.8%, Adani Enterprises rose 7.7%, and Adani Total Gas gained 7%. Other group companies, including Adani Energy Solutions, Adani Ports, and Ambuja Cement, saw similar gains, signaling investor confidence after prolonged turbulence.

Hindenburg’s initial allegations in 2022 accused the Adani Group of financial mismanagement, leading to significant market losses. The group consistently denied the accusations, describing them as “calculated attacks on India.” The Supreme Court of India later cleared the conglomerate, with experts labeling the claims baseless.

In August 2024, Hindenburg renewed its assault with “recycled claims,” which Adani Group swiftly dismissed. Speaking about the controversy, Gautam Adani said it was "a dual assault targeting our financial stability and pulling us into a political storm."

Hindenburg also targeted Indian markets regulator chief Madhavi Puri Buch and her family, which Buch called an “attempt at character assassination.”