Infosys agrees to pay $34 million to settle visa row with US

BANGALORE: Infosys said it agreed to pay $34 million to settled investigations by various United States government departments into its alleged misuse of visas in that country.

The settlement with the US Department of State, Immigrations and Customs Enforcement and the US Department of Homeland Security relating to I-9 paperwork errors and visa matters that were the subject of investigation.

During the September quarter earnings, the company had said it set aside $35 million for visa related matters.

Infosys, which is India’s second largest software outsourcer, has been facing investigations in the US since 2011 after a former employee accused the company of circumventing visa rules. The allegations was that Infosys had used short-term and less expensive B-1 visit visas instead of more expensive H-1B work visas to send Indian employees to work on projects in American companies.

Infosys said there were no criminal charges or court rulings against the company and it denies and disputes any claims of visa fraud. “Furthermore, there are no limitations on the Company’s eligibility for federal contracts or access to US visa programs as a result of the settlement,” the statement said.

“This settlement removes the uncertainty of prolonged litigation and allows us to continue to focus on delivering measurable results for our clients”.

On Wednesday, Infosys stock closed at Rs 3324 apiece, down by 0.33% on the Bombay Stock Exchange.