Barclays challenges Pune court's verdict in whistleblower retaliation case
Barclays is attempting to reverse a ruling by an Indian court that found the British bank guilty of retaliating against a whistleblower. The case centers around a former senior IT manager who raised concerns about the mishandling of data loss. The district court in Pune stated in a March 28 judgment that Barclays' whistleblowing policy seemed to exist only on paper, ordering the bank to pay the whistleblower, Atul Gupta, two years' salary, totaling approximately Rs. 96 lakh.
Barclays' appeal and whistleblower protection
A hearing for Barclays' appeal to the Bombay High Court is scheduled for October 20. Barclays is determined to challenge the district court's ruling, asserting its commitment to fostering a corporate culture where employees feel comfortable reporting wrongdoing. The bank spokesperson emphasized their zero tolerance for whistleblower retaliation while refraining from commenting on the specifics of the case. This legal dispute raises questions about the effectiveness and consistency of Barclays' whistleblowing procedures across its subsidiaries.
Regulatory oversight and whistleblower tracking
Email correspondence between Gupta and the Financial Conduct Authority (FCA) reveals that the FCA's whistleblowing team was aware of the case but did not plan specific actions. The FCA has previously ordered banks to establish clear internal processes for whistleblowing. However, they declined Reuters' request for comment on why further action was not pursued. The FCA noted that they engage in regular discussions with Barclays regarding various issues, including whistleblowing, without commenting on individual cases.
Barclays' defense and Gupta's appeals
Barclays' legal team argued in court that Gupta's concerns had been internally investigated but remained unsubstantiated. They contended that Gupta's position had become redundant, and he had accepted three months' severance pay. Gupta, however, has appealed to the Bombay HC, asserting that the awarded payout was insufficient. Additionally, he has filed a secondary civil case against Barclays, alleging that the bank presented misleading documents during the initial proceedings. A court hearing for the secondary case is set for October 12.
The data loss incident and whistleblower's timeline
The dispute centers around the accidental deletion of 1.4TB of data in August 2019, costing Barclays Rs. 7.1 crore. Notably, Barclays didn't dispute this in court. Gupta reported data mishandling concerns to senior management, the legal team, and the global whistleblowing team in October 2019. On November 15, 2019, just before a planned video call with an internal investigator, Gupta's managers warned that he was at risk of redundancy. On February 4, 2020, he was dismissed from his position.
