In a major development and a setback to Indian IT industry, the world bank has barred Wipro Technologies from bidding and under taking any contracts with world bank till 2011. The ban has come into effect from June 2007 citing an interest conflict with the world bank. The issue behind the development is Wipro offering its shares in its Initial public offering(IPO) to world bank employees, their relatives and friends.

But from the World Banks point of view, it was like providing improper benefits to the world bank employees, further banning it for 4 years till 2011. World bank has also barred Satyam Computers last month for 8 years.. It has also barred Megasoft Consultants Ltd for 4 years till 20011. However the company has come out with a statement saying “Wipro’s revenue from the World Bank is insignificant,” and it would not hamper their business prospectus in the coming years. Wipro shares plunged as much as 11% in the morning trade, reacting to this news.

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