Infosys to pay record $35 million to settle US visa probe

Infosys Ltd, India's second-largest software exporter, is expected to pay a record $35 million for visa rule violations, perhaps the largest in an immigration probe, in a settlement with the US Justice department.

Infosys is reported to have reached an agreement with the US Attorney's Office for the Eastern District of Texas for resolving an investigation into the company's use of B-1 visas.

Infosys had said in a regulatory filing on 11 October that a federal grand jury had sought records related to its sponsorships for B-1 business visas and its use of them.

The investigation was targeted at the company and ''certain'' of its employees, according to the filing.

Infosys had also stated that it had made a 35 million provision for a potential settlement of the probe and that it was ''engaged in discussions'' to resolve the matter.

The settlement brings to an end a joint investigation by the justice department and the department of homeland security.

The office of US Attorney John M Bales for the Eastern District of Texas said DHS and the state department would ''announce the settlement of systemic visa fraud and immigration abuse allegations with an international corporation.''

The probe comes amid a debate over US barring entry of foreign workers through selective legislation, claiming that cheaper foreign workers, particularly in the software sector, are displacing qualified Americans because they are costly.

Infosys had, earlier, resolved two whistle-blower cases in Alabama and California after employees alleged it misused B-1 visas, which are temporary business permits, to avoid limits on H-1B employment visas.

The US Congress proposes changes to immigration laws to limit the ability of large Indian companies to access H-1B visas, which could further damage Infosys's business model in North America, which accounts for more than 60 per cent of its revenue.

The present investigation and huge penalties are pointers that the US government is serious about enforcing the H-1B visa regulations.