Fact-Check: Old Incident of Infosys Paying Penalty to the USA Viral as Recent

This case is from 2013 and has been falsely shared as recent on social media platforms.

A widely shared post on social media claimed that Infosys was recently penalised to the tune of ₹283 crore ($34 million) in the United States of America (USA).

Apart from social media users, news outlets such as India.com, MSN, and Puthiya Thalaimurai TV (PTTV), a Tamil-language news network, also shared this claim. 

(Archives of similar claims can be found here and here.)

Is this true?: No, the claim is false.

• This event traces back to 2013, when Infosys settled a lawsuit regarding visa fraud in the USA.

What we found: We ran a keyword search and came across multiple news reports by the New York Times and Economic Times from 2013.

• The reports explained how Infosys had consented to pay a $34 million penalty as part of a civil settlement. The agreement came after an inquiry by federal prosecutors in Texas, who revealed what they termed as “systemic visa fraud and abuse.”

• As stated in a formal press release from U.S. Immigration and Customs Enforcement (ICE) dated 29 October 2013, the company faced allegations of improperly using B-1 visas, generally designated for brief business visits.

• The government agency charged Infosys with bringing temporary employees from India to the U.S. for positions that should have needed H-1B visas. The improper use of the visa system was deemed a breach of U.S. immigration regulations. The company's activities were part of a larger trend of purported visa fraud, leading officials to initiate legal proceedings.

• In a formal press release in 2013, the company refuted and contradicted all allegations of widespread visa fraud, exploitation of visas for competitive gain, or any misuse of the immigration system.

• This agreement of a $34 million penalty settled the legal issue. Since that time, no additional fines or accusations have been levied against Infosys concerning visa misuse or by any US government entity.

Conclusion: An old incident of Infosys paying penalty to the USA for alleged visa fraud is being shared on social media, as recent.

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