In a significant setback for Infosys and its founder, billionaire Narayana Murthy, the tech giant has been fined a record Rs 238 crore (over $3.3 million) for systemic visa fraud in the United States. This marks one of the largest cases of immigration fraud involving a corporate entity in the country.
Allegations of Visa Misuse
The charges against Infosys revolve around allegations that the company misused the US visa system by issuing B-1 visitor visas to its employees instead of the more regulated H-1B visas. This alleged practice enabled Infosys to bypass strict wage and immigration requirements, giving the company an unfair advantage in labor costs.
According to US authorities, this violation undermines fair labor practices and compromises the integrity of the US immigration system.
Settlement and Compliance Measures
Although Infosys has not admitted liability for the charges, the company has agreed to settle the lawsuit by paying the hefty Rs 238 crore fine. Additionally, Infosys has pledged to implement stricter compliance measures to prevent future immigration law violations. These measures are aimed at enhancing transparency and ensuring adherence to visa regulations at the corporate level.
Impact on Infosys and the Industry
The fine serves as a stern reminder to multinational corporations about the importance of complying with legal and ethical labor practices. It also highlights the risks associated with circumventing immigration regulations in competitive global markets.
Performance of Indian IT Giants
Despite the controversy, Indian IT firms have delivered robust returns to investors this financial year. According to market data:
- Wipro led the pack with a 47% return over the past year.
- Tech Mahindra followed closely with a 45.72% return.
- HCL Technologies achieved a 43.85% return.
- Infosys reported a respectable 33.46% return, outpacing Tata Consultancy Services (TCS), which delivered a 24.81% return.
While Infosys faces scrutiny over the visa fraud case, the overall performance of Indian IT firms underscores the sector’s resilience and strong market presence.