iGATE Corporation, late on Monday (U.S. time), announced the sacking of its President and CEO Phaneesh Murthy for “violating” company policy by failing to report a “relationship” he had with a fellow employee.

A statement issued by the company’s board from its headquarters at Fremont, California, said the employee had also filed a complaint alleging “sexual harassment” by Mr. Murthy, who faced a similar charge a decade ago while at Infosys.

However, iGATE said an investigation by an external legal counsel “did not uncover(ed) any violation of iGATE’s harassment policy.”

The company said its “ongoing” investigation into the “facts and circumstances” of the relationship he had with Araceli Roiz, Head of Investor Relations at iGATE Corporation, revealed that Mr. Murthy “violated iGATE’s policy as well as Mr. Murthy’s contract”.

iGATE, which earned revenues of $1.2 billion in 2012, announced that Gerhard Watzinger would assume Mr. Murthy’s responsibilities as CEO “on an interim basis.”

Sunil Wadhwani, Co-founder and Co-chairman, iGATE, said the board recognised Mr. Murthy’s “significant contributions” to the company. “However, as a result of this violation of iGATE policy, we asked Mr. Murthy to step down,” Mr. Wadhwani said.