India's Infosys to pay $34 million in U.S. visa case

Wed Oct 30, 2013 11:25am EDT
 
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By Harichandan Arakali

BANGALORE (Reuters) - Infosys Ltd said on Wednesday it has reached a $34 million settlement with U.S. authorities in a case involving the widespread practice by Indian firms of flying workers to client sites in the United States on temporary visas.

The fine, which the U.S. Department of Justice said is the largest in a case of its kind, comes as U.S. lawmakers consider legislation that would make it more difficult and costly for Indian IT firms to send workers to the United States on temporary, restricted visas.

"Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage or immigration abuse. Those claims are untrue and are assertions that remain unproven," Infosys said in a statement.

"There were no criminal charges or court rulings against the company. Furthermore, there are no limitations on the company's eligibility for federal contracts or access to U.S. visa programs as a result of the settlement," it said.

Infosys, India's second-largest IT services exporter, employs roughly 15,000 people in the United States. As of March 31, about 10,800 of those were on H-1B visas, which allow an employee to stay and work in the United States up to six years, and 1,600 were on temporary L-1 visas, a company filing said.

The U.S. investigation focused on the use of B-1 business visas and I-9 forms, Infosys has said. I-9 forms verify the identity of employees and their authorization to work in the United States. A person on a B-1 visa in the United States can participate in meetings but is not allowed to work.

"It is likely to add more fuel to the ongoing debate around visa reforms," Chirajeet Sengupta, practice director in Mumbai at Everest Group, which advises clients on technology vendors, said on Tuesday after reports that a settlement was imminent.

"These reforms, if executed, have the potential to impact Indian service providers' landed resource model that is largely driven by access to H-1B visas in large numbers," he said.   Continued...

 
An employees walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. REUTERS/Vivek Prakash