On the 16th of April, Dalal Street Insiders broke the news that their was a significant scrutiny of applications made by Infosys and TCS with reference to their H1-B Visa Applications.
The US Department of Homeland Security (DHS) has advised Infosys Ltd that it has found errors in a significant percentage of its Form I-9 (visa-related forms). We believe that if the DHS concludes that there has been a systematic policy of misuse/violation of visas, there could be penalties or other strictures that could be imposed. This is the first instance of Infosys acknowledging that something amiss has been found by DHS in its visa enquiry.
We would also like to highlight that Infosys is going on trial in August in a case filed by one of its employees (Jack Palmer) on allegations of B1 (business) visa misuse, and this event could strengthen the case against Infosys.
Refer Section 2.9 of the SEC Filing by Infosys.