Whalesbook
Regulatory Scrutiny Intensifies
Infosys Limited is currently under investigation by the U.S. Department of Justice concerning the classification of certain employees holding H-1B visas. The probe centers on immigration documents filed with U.S. government authorities for individuals working for one of Infosys's clients.
The company confirmed its engagement in discussions with the Department of Justice regarding the ongoing inquiry. Infosys is also pursuing its own internal investigation into the matter. In a regulatory filing, the IT services firm stated it cannot predict the outcome, including any potential material adverse effect on its business or financial results.
Company Responds Amidst Viral Concerns
This development comes amid heightened scrutiny, with CEO Salil Parekh refuting reports that any Infosys employees were detained or deported by U.S. Immigration and Customs Enforcement (ICE). His statement followed a widely shared social media post that raised concerns among Indian professionals on H-1B visas.
Parekh clarified during an earnings conference that no employee was apprehended. He noted, "A few months ago, one of our employees was denied entry into the U.S. and was sent back to India." The viral post, however, detailed a more severe alleged encounter involving ICE agents and an option between jail or deportation for an Infosys employee.