Mumbai, India (4E) – Infosys Ltd. allocated $35mn for a potential settlement deal linked to a U.S. investigation into the company’s alleged violations on the use of visas.
India’s second-largest software exporter is in discussions to strike a civil resolution with the U.S. Attorney’s office which is probing compliance with visa laws, according to the Bangalore-based software firm in an e-mailed statement. The company did not provide further details as the talks are still ongoing.
Infosys, which released earnings results Friday, resolved two cases in California and Alabama in the last 14 months following allegations from employees that the company misused temporary business permits or B-1 visas, to avoid H-1B employment visas limits.
Immigration rules changes proposed by Congress, which would reduce major Indian companies’ ability to get H-1B visas, could hurt Infosys’ business model of reliance to North America for more than 60 percent of the company’s revenue.
Infosys said net income was at 24.1bn rupees ($394mn) in the second quarter ended September. The result was short of 46 analysts’ median estimate of 26.6bn rupees in a survey by Bloomberg News. The decline was primarily due to the 2.2bn rupees allocated by the company for visa-related matters, the statement said.