Infosys says in process of resolving US visa investigation

Tony Avelar | Bloomberg | Getty Images

Indian IT firm Infosys said on Tuesday it was in the process of reaching a settlement with the U.S. government over the company's alleged misuse of temporary business visas.

U.S. authorities have been investigating India's second-largest information technology services exporter since 2011.

The Wall Street Journal had earlier said that the United States was expected to announce a resolution in the case on Wednesday. In a statement, Infosys said a resolution had yet to be finalized.

The Journal reported that the fine, estimated to be as large as $35 million, would be the largest immigration fine ever.

"In response to reports attributed to Justice Department officials, Infosys is in the process of completing a civil resolution with the government regarding its investigation of visa issues and I-9 documentation errors," the company said.

India at 'mercy' of foreign investors: Pro

"The resolution has not been finalized," it added.

Indian IT outsourcing firms like Infosys use thousands of visas to bring in employees, mainly from India, a practice that has come under intense scrutiny as it is seen by some U.S. policymakers as hurting the American job market.

Earlier this month, Infosys said it had set aside a reserve of $35 million as it worked towards a resolution for the U.S. government's investigation.

By Reuters