After Infy visa row, other IT cos under scanner
After Infy visa row, other IT cos under scanner
Jochelle Mendonca, ET Bureau | Nov 4, 2013, 05.58 PM IST
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After settling with India's second-largest software exporter Infosys on the visa misuse allegations, the United States is investigating other companies for possible similar violations, according tothe US Immigration and Customs Enforcement agency.
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MUMBAI: After settling with India's second-largest software exporter Infosys on the visa misuse allegations, the United States is investigating other companies for possible similar violations, according to the US Immigration and Customs Enforcement agency.
"There are offshoot investigations underway to look for similar misdeeds at some other companies," Karl Rusnock, a spokesman for the agency's division in Plano, Texas, told ET.
Last week, agreed to pay $34 million ( Rs 210 crore) to settle all federal investigations into whether the Bangalore-based company sent Indian workers to the US on cheaper business visit visas (B1) instead of work visas (H1-B). Infosys has stridently denied the charge. The probe began in 2011. Rusnock declined to reveal the names or the nationalities of the companies as the agency has not yet determined if the investigations would lead to criminal or civil charges.
Tata Consultancy Services, Infosys, Wipro and HCL Technologies - the largest Indian players - depend on work visas to service clients in the United States. TCS declined to comment on any potential investigation, but said it is fully compliant with all relevant regulatory requirements in all the markets it operates in. HCL Technologies did not want to comment. Emailed queries to Wipro did not elicit a response.
The industry body, Nasscom, conceded there have been discussions between other companies and US government officials on the topic of visas. "The Infosys case was old and over the last 3-4 years there have been many discussions between the companies that use the visas and US consular and government officials. I don't think there is anything new that will get triggered," said Som Mittal, president of Nasscom. The Indian IT industry, which exported services worth $75 billion in FY13, is already facing the prospect of significantly tighter US visa rules. The US is the largest market for the sector, contributing over 60% of its revenues.
In July, the US Senate passed an immigration bill which, if made into a law, could steeply raise the cost of an H-1B visa. The US House of Representatives is working on its own version of immigration reform, leaving the final bill resolution to a committee constituted by members of both the House and the Senate. But the Infosys fine has bolstered the case for those calling for stricter restrictions on Indian firms. "Some companies are finding creative ways to subvert the H-1B visa programme and bring in foreign workers to the detriment of American workers.
Corporate whistleblowers reveal that too many companies appear to be pushing the envelope and ignoring the intent or spirit of the law," Senator Chuck Grassley said in a statement hours after the Infosys settlement.
Grassley has also called for a thorough investigation of the B-1 visa programme to prevent companies from circumventing the stricter requirement of the H-1B visa scheme. Even without further fines or civil cases, experts expect some fallout from the Infosys case.
"There will be deeper scrutiny and IT companies may be asked to provide periodical compliance report, undertaking the rules and guidelines have been complied with," said Rakesh Prabhu, partner and head of immigration practice at Mumbai-headquartered law firm ALMT Legal.
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