After Infy, more IT firms may come under US visa lens

Earlier this week, Infosys agreed to pay $34 mn to settle with US authorities on alleged visa misuse matter that dated back to 2011

Infosys has put the visa misuse investigations behind it through a civil settlement with the US authorities, but experts believe the episode might now drag its peers under the scanner.

According to a report in the Wall Street Journal (WSJ), the US government is investigating information technology (IT) companies for violation of immigration laws. Though the WSJ report did not name any company, there are fears that many Indian companies may come under the ambit of such investigations. “Other firms may also face similar investigations as it is generally viewed that Infosys was not the only firm that was making an extensive use of the B-1 visas,” Peter Bender-Samuel, founder & chief executive officer of research and consultancy firm Everest Group had earlier told Business Standard.

Earlier this week, Infosys, India’s second largest information technology (IT) services company, agreed to pay for $34 million (approximately Rs 210 crore) to reach a civil settlement with the US authorities on alleged visa misuse matter that dated back to 2011.

Even as the Bangalore-based company said it had not indulged in any unlawful activities, the US authorities claimed Infosys had used inexpensive and easy-to-get B-1 visa-holders to perform jobs that required legitimate H-1B visa-holders or US citizens.

According to Poorvi Chothani, managing partner of Mumbai-based immigration law firm LawQuest, by agreeing to a civil settlement Infosys might have avoided a protracted, time-consuming, unpredictable and expensive legal battle, “but this also indicates the company admits to having violated some rules, perhaps not to the extent it was claimed”.

Cyrus D Mehta of US-based immigration law matters firm Cyrus D Mehta & Associates, PLLC also said Infosys’ $34-million settlement should be a “wake-up call” for all. “Companies should be more careful when using their employees use the B-1 visa for business purposes,” Mehta said in an email reply. “Even though it is a very large fine, Infosys should feel fortunate it was a civil settlement, and there were no criminal implications, as that could have been far worse.”

However, Som Mittal, president of industry body Nasscom brushed aside such fears. “In the past, there were some interpretation issues and those have all been clarified now. Over the past three years, there have been interactions between the (US) consulates and our members to understand the processes,” said Mittal. “This (Infosys) is an old story, nothing new has triggered,” he added.