Updated

New Delhi, Aug 18 (PTI): In a scathing attack on N R Narayana Murthy, Infosys Board on Friday blamed his "continuous assault" as the primary reason for CEO Vishal Sikka quitting the company and ruled out a formal role for the co-founder in the company's governance.

There were no immediate comments from Murthy on the allegations. In a strongly worded statement, the country's second largest software services firm defended Sikka's performance saying under him, Infosys has delivered profitable revenue growth.

The Board alleged that a letter authored by Murthy "has been released to various media houses attacking the integrity of the Board and management alleging falling corporate governance standards in the company".

"Murthy's letter contains factual inaccuracies, already-disproved rumours, and statements extracted out of contextfrom his conversations with Board members," it said.

The Board said Murthy has repeatedly made "inappropriate" demands, which are inconsistent with his stated desire for stronger governance. The Board argued that Murthy's "campaign" has intensified over time.

"Over time the demands have intensified, which when declined by the Board resulted in the threats of media attacks being carried out," it said.

The Board rued that its efforts to resolve the concerns of the founders - who together own about 12.75 per cent stake in Infosys - over the course of a year through a dialogue have not been successful.

The statement added that the Board had tried earnestly to find "feasible solutions within the boundaries of law and without compromising its independence". It also cautioned that Murthy's actions and demands are damaging the company.

The Board sought to assure shareholders, employees and customers that it "will not be distracted by this misguided campaign" by Murthy and will continue to adhere to the highest international standards of corporate governance.

During an investor call, Sikka said the "continued drumbeat" about former CFO Rajiv Bansal's severance package and Panaya deal in the last 4-5 quarters have been "sickening".

Infosys co-chairman Ravi Venkatesan said the management is highly distressed by the continuing allegations against Sikka and Board members.

Earlier Report

Infosys chief Vishal Sikka steps down as MD and CEO

Mumbai, Aug 18 (Deccan Chronicle): Vishal Sikka, the Chief Executive Officer (CEO) and Managing Director (MD) of techonology giant Infosys has resigned from his position.

Sikka will however continue as the Executive Vice Chairman of the company. Meanwhile, U B Pravin Rao has been appointed as the CEO and MD of Infosys.

"The succession plan for appointment of a new Managing Director and Chief Executive Officer has been operationalised by the Board and a search for the same has been commenced," read a statement released by the company.

In his resignation letter to the company, Sikka cited a "stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the Company's transformation".

SIkka's rule been facing alot of flak for the way the company was run. Founders of the company like Narayana Murthy had raised several questions regarding Rs 23 crore severance package given to a departing chief financial officer.

Infosys has also seen a rush of high-level exits in recent times.

Vishal Sikka joined Infosys in April, 2014, bringing along with him a team of colleagues from his former work place SAP SE.

The benchmark BSE Sensex took a 200-point plunge after the morning announcement of Sikka's resignation.

The company's shares were trading down by 5.99 per cent at Rs. 960 on the BSE.