IT star Cognizant finds itself stuck in another quagmire

It's turning out to be a pretty rough year for IT star Cognizant, headquartered out of Teaneck, New Jersey and listed in the US but conducting most of its outsourced work in India. This relatively newer firm (compared to veteran players such as Infosys and TCS) has been a consistent high-flyer, outpacing its peers in revenue growth, innovation and leadership but this year is turning out to be a nightmare one, of the kind you would not have thought possible even just a year ago. The most recent imbroglio is about whether Cognizant improperly obtained licenses and permits required for building or renovating some of its twelve facilities in India. For instance, the Local Planning Authority (LPA) that has oversight of the company's development centre in Keeranatham near the city of Coimbatore in southern India says that the company flouted laws by constructing two extra floors at its campus without obtaining necessary approvals. Apparently, the company was given conditional approval but didn't receive an environmental clearance or a fire safety clean chit.