The UK’s opposition Labour Party has claimed that India-based information technology company Infosys received "VIP access" and has been promised assistance to expand in Britain due to Prime Minister Rishi Sunak's familial connection with co-founder Narayana Murthy.
A 'Sunday Mirror' report, based on a freedom of information (FOI) request, revealed that Trade Minister Lord Dominic Johnson held discussions on the UK operations of Infosys during a visit to the firm's Bengaluru office in April 2023, reported India Today.
During the meeting, Lord Johnson expressed a desire for the expansion of Infosys in the UK, which raised questions about transparency in the government's relationship with the firm.
Lord Johnson "made clear that he was keen to see a bigger Infosys presence in the UK and would be happy to do what he could to facilitate that", a readout of the meeting said, reported India Today.
Questioning the "special treatment" received by Infosys, Jonathan Ashworth, a member of the Labour Party, said the government had serious questions to answer.
The fresh allegations come amid a controversy over government funds spent on personal protective equipment (PPE).
"After the Tories handed billions in taxpayers’ cash to cronies for duff PPE (personal protective equipment), the public will wonder why an outfit so personally close to Rishi Sunak appears to have been granted this VIP access. There are serious questions to answer," Labour’s shadow minister Jonathan Ashworth told the newspaper.
Akshata Murty, Sunak’s wife, holds a 0.91 per cent stake valued at around GBP 500 million in Infosys and has received millions in dividends in the past financial year.
During the meeting, Lord Johnson highlighted the UK's individual visa scheme to the Infosys executives, whose names were redacted in the FOI documents, and how it would benefit the multinational company.
"The investment minister regularly meets businesses and international investors, including a range of Indian businesses, to champion the UK as an investment destination and secure commitments worth billions of pounds. That engagement drives investment across the UK, creating thousands of high-quality jobs and boosting the UK economy," a Department for Business and Trade spokesperson said.
The development comes amid claims by the Opposition in the UK that Infosys sought visa benefits to accrue from the proposed India-UK free trade agreement (FTA), which has been hanging fire for over a year.
The briefing paper for the April 2023 meeting notes that one of the objectives was to "reassure that the FTA will further create new opportunities and investor-friendly policies to support business growth".
This is the latest attack by the Labour Party on Akshata Murty's business interests.
The opposition had previously questioned her decision to liquidate Catamaran Ventures, an investment venture incorporated in 2013.
The 43-year-old Indian businesswoman, who is the daughter of Infosys co-founder Narayana Murthy, established her venture in 2013, with her husband serving as one of the directors. However, Sunak resigned from the venture in 2015.
Last year, it was revealed in a financial statement that she had chosen to dissolve her company as a going concern.
Previously, Sunak and his wife Akshata faced scrutiny regarding Murty's legal non-domicile tax status, enabling her to evade UK taxes on her Indian income.
In response to opposition criticism on this matter, she gave up her non-domicile tax status and committed to paying all her taxes in the UK to prevent the issue from becoming a distraction in her husband's political career.