Infosys has agreed to pay a record Rs 283 crore ($34 million) to settle allegations of visa fraud and abuse of the U.S. immigration process. This is the largest penalty ever imposed in an immigration fraud case.
Infosys allegedly misused B-1 visitor visas instead of H-1B visas for its workers in the United States. This allowed the company to bypass strict wage and immigration requirements.
U.S. authorities stated that this practice undermined fair labor practices and the integrity of the U.S. immigration system.
As part of the settlement, Infosys has agreed to implement enhanced corporate compliance measures to prevent future violations.
It is to be noted however that Infosys has not admitted liability for the charges but has agreed to the settlement.
Infosys' stock price fell by about 1.2% following the announcement of the penalty.
This case serves as a strong reminder for multinational corporations to adhere to legal standards and fair practices in hiring and immigration processes.
There have been several other notable visa fraud incidents involving companies and individuals from Indian subcontinent.
In 2021, Cloudgen LLC, a consulting and strategic solutions company pleaded guilty to conspiring to commit visa fraud from March 2013 to December 2020. The company's corporate representative, Jomon Chakkalakkal, was involved in the case.
While TCS (Tata Consultancy Services) has not faced a major visa fraud case like Infosys, it has been under scrutiny for its visa practices and the use of H-1B visas in the U.S.
Similar to TCS, Wipro has also been under scrutiny for its visa practices, although it has not faced a major visa fraud case.
In 2011, Amit Kakkar, the owner of Healthyway Immigration in Chandigarh, was involved in a major visa fraud. His company promised guaranteed visas to Canada, the U.S., and Australia, mainly targeting students and professionals. Kakkar charged high fees and promised quick visa processing, but it turned out to be a scam.
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