TCS' Alleged H-1B Visa Fraud In Focus Amid Increased Scrutiny Under Trump 2.0

IT bellwether Tata Consultancy Services is under the radar for an alleged visa fraud as Donald Trump's re-election in the United States has brought worries over changes in the visa program.

Allegations by Anil Kini, a former employee, have re-emerged that TCS relies on falsifying visa requirements to send more employees to the United States.

Kini has alleged that TCS submits far more petitions for H-1B visas than it has open positions to maximise its chances of securing the highest number of visas through the lottery system. It then pays these workers less than the required wage, in violation of the US visa laws.

Consequently, the company pays significantly lower payroll taxes to the US government than it would have to if it paid its H-1B visa employees at the required rate, the complainant further alleged.

TCS is also accused of using L-1 and B-1 visas—which are easier to obtain—for employees that find it difficult to obtain H-1B visas. To do so, it falsifies individuals' job titles and work responsibilities on their visa applications, and takes steps to mask its deception from United States Customs and Immigration Services during visits, Kini claimed.

Kini, who has filed an appeal following the dismissal of his lawsuit against TCS, mentions that in 2017 he had submitted an initial whistleblower report to the company's chief executive officer detailing fraudulent visa practices. Subsequently, he also submitted three follow-up reports, as per his filing.

In response to this, Kini alleged, the company retaliated against him by cutting his pay, stalling promotion, removing him from projects, and eventually terminating him.

In an interview with news agency Bloomberg, Kini recently said that his superiors ordered him to falsify internal organisational charts to make them appear more top-heavy with managers than they actually were. This was to prepare for any heightened scrutiny of the way TCS was using employment visas, he added.

A Bloomberg report notes that TCS has received significantly more L-1A manager visas than the number of managers it reports to the US Equal Employment Opportunity Commission. The company, which partners with major US tech firms, has reportedly secured more manager visas than any other employer in recent years.

Former employees of TCS had earlier filed federal lawsuits against the company under the False Claims Act for committing visa frauds to circumvent US labour laws and H-1B visa rules. The three lawsuits filed were later dismissed by the court. Kini, who used to work as an IT manager at TCS' Denver office, has filed an appeal after his first lawsuit was dismissed.

TCS, in a statement, refuted the allegations levelled by former employees and claimed that it is in compliance with all laws of the United States. “TCS does not comment on ongoing litigation, however, we strongly refute these inaccurate allegations by former employees, which have previously been dismissed by multiple courts. TCS rigorously adheres to all U.S. laws," it said.

With Trump taking office again as US president, there has been growing uncertainty around visa policies, especially H-1B visas. The proposals of the new administration also include raising wage thresholds and introducing additional fees.

On Wednesday, TCS' shares closed 2.28% lower at Rs 3,781.35 apiece on the BSE, compared to a nearly flat close for Sensex.