Infosys, TCS get clean chit in US visa misuse investigation

The US Department of Labor's investigation into alleged visa abuse by Tata Consultancy Services (TCS) and Infosys has not found any violation.

The department investigated allegations in June that the companies flouted visa norms while bringing foreign technology workers to the US for a project with electric utility Southern California Edison.

"Infosys is pleased to report that the US Department of Labor concluded its investigation with a determination of compliance regarding labour condition applications filed in the Southern California Edison project," Infosys said in a statement issued on Tuesday.

"Audits by the Department of Labor have taken place from time to time and TCS has always been found to be compliant. TCS attaches the highest importance to a strict compliance programme and abides by all regulatory requirements and visa laws," TCS said in a separate statement.

Prime Minister Narendra Modi is expected to meet the heads of a number of technology companies during his visit to the US later this month.

According a report published by New York Times in June, the Department of Labor had initiated investigation against TCS and Infosys for "possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison".

The investigation was into allegations that many of Southern California Edison's 500-odd technology workers who were laid-off by the company were made to train immigrant replacements on temporary visas brought in by the Indian companies.

This was the first time two large Indian technology companies were probed together. The Indian information technology industry is heavily dependent on US visas to send employees temporarily to the US for working at clients' sites before offshoring work to India.

Infosys was earlier investigated by US authorities for visa abuse, which the company settled by paying $34 million in October 2013.

"We do not practise or condone unfair or unethical visa practices. Our priority is to operate fairly, ethically and with integrity, which is good business and what our clients expect," said Sandeep Dadlani, executive vice-president and head of Americas, Infosys.

IN STRICT COMPLIANCE

• The Department of Labor had initiated probe against TCS and Infosys for violation of rules for visas, according to NYT
   
• Probe was into allegations that many of SCE's 500-odd workers, laid off by the company, were made to train immigrant replacements on temporary visas brought in by the Indian firms
   
• This was the first time two large Indian tech firms were probed together