Infosys pays $34m to settle US government visa dispute

Indian software firm blames 'paperwork errors' and insists it's done nothing wrong

Infosys, the second largest software firm in India, has reached a $34m (£21m) settlement with US authorities in a lawsuit surrounding its alleged misuse of temporary visas.

The case, brought by the US Department of State, Immigrations and Customs Enforcement, the US Department of Homeland Security and the US Attorney's Office for the Eastern District of Texas is said to be the largest of its kind.

It surrounds the issue of H-1B and B-1 Visas for foreign employees working in the US, with Infosys and its 15,000 people in the country one of the largest companies to regularly apply through the scheme.

US authorities issue just 65,000 H1-B visas a year at a cost of $5,000 (£3,111) each, while B-1 visas cost much less but are only meant for short business trips. The US government had been investigating whether Infosys had committed fraud by bringing staff to the US on B-1 visas instead of the required H-1B.

The Indian firm has denied any wrongdoing, blaming any confusion on "paperwork errors".

"Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage or immigration abuse. Those claims are untrue and are assertions that remain unproven," Infosys said in a statement.

"There were no criminal charges or court rulings against the company. 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," it continued.

"The company's use of B-1 visas was for legitimate business purposes and not in any way intended to circumvent the requirements of the H-1B programme," the statement added.

US authorities started investigating Infosys and its use of visas in 2011.