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DoJ probe into visa issue not a criminal inquiry: Infosys
V Balakrishnan, Member of Board and CFO of Infosys on Tuesday said that the Department of Justice (DoJ) probe into the visa issue was not a 'criminal investigation'.
V Balakrishnan, Member of Board and CFO of Infosys on Tuesday said that the Department of Justice (DoJ) probe into the visa issue was not a 'criminal investigation'.
The IT major had earlier said that in a recent meeting with the United States Attorney's office in Texas, the company was 'advised' that some of its employees and the company are targets of an investigation in connection with alleged United States visa abuse.
In May, a federal grand jury subpoenaed Infosys in connection with a lawsuit filed by a US based employee. The employee, Jack Jay Palmer, had alleged that Infosys was misusing B1 businesses visas issued by the United States.
About six employees and Infosys was names 'target' by DoJ. Balakrishnan said the company is in the process of submitting documents to the US authority. "The issue is a distraction not an overhang," the CFO told CNBC-TV18.
"The L-1 visa rejection rate at 40-45% from 10-12% last year," Balakrishnan informed adding, "There are no issues on H1 B visas."
In United States, B1 Visas are issued for short term business visitors and not for employees being sent onsite on work. According to US visa rules, B1 visa holders should not be paid by an employer.
Balakrishnan said Infosys plans to hire about 1,500 in the US this year. "The US market in a recovery mode, however, Europe still remains a concern."
