Sundaram BNP Paribas Home Finance Ltd, a leading housing finance company from south India, is in trouble for allegedly breaching terms of a contract it had with an Andheri-based software firm, Kensoft.
The cyber crime police station at Bandra Kurla Complex, where the complaint has been lodged, will be initiating legal action against Sundaram for the alleged data theft and criminal breach of trust.
Senior inspector Nandkumar More told HT on Wednesday that a team would soon be dispatched to Chennai, where the company is headquartered, to initiate legal action.
“We came across wrongdoings by Sundaram during an investigation after a complaint was filed by Kensoft in February last year and an FIR was registered in October,” More said.
However, the Madras high court ordered a stay on the police investigation after the finance company filed a writ petition, challenging police action. Last week, the court lifted the stay.
“We have resumed our investigation. It is being done in a professional manner,” said joint commissioner of police, crime, Himanshu Roy.
As per the complaint, Kensoft had entered into an agreement with Sundaram BNP Paribas Home Finance Ltd in providing software. The copyright (IPR), ownership, source code and maintenance of the software remained with Kensoft.
“We have provided similar software to companies and corporates such as the ICICI Bank, Bank Of India and several others,” said Major VP Singh, one of the directors of Kensoft. Non-transfer of the software to any third party was one of the contractual terms. The contract was renewable every year.
“Everything went well till Kensoft sent engineers in 2008 to check the software after Sundaram complained of some errors,” More said. “During an audit, the software was found to have been installed on a server at the Sundaram Infotech Solutions, a sister venture of Sundaram BNP Paribas Home Finance Ltd.”
“It was also found that the software had 300 users (in place of the contractual 75) and some external programmes were written on it. Our software has been certified as one of the best in the business by some of the renowned institutions, including the IIT Bombay. The annual subscription (user) fee of the software runs into several hundreds of crores of rupees. One can imagine the amount of revenue loss we suffered,” he added.