Infosys CFO Publicly Claims No Visa Violations, Despite Company's Internal Admission

Don Tennant

In an interview last week with an Indian media outlet, Infosys CFO V. Balakrishnan claimed that Infosys had "not violated any of the rules" relating to U.S. visa policies. Unless others at Infosys have kept Balakrishnan in some sort of protective bubble and kept the company's internal correspondence on the matter successfully hidden from him, he knows better. So he would be well advised to change his story before he's questioned under oath.


Balakrishnan made the comments in response to an Economic Times interviewer's question about Infosys' "two prong battle to fight in the U.S. over the visa row." Referring to the civil case filed by Infosys employee and whistleblower Jay Palmer, and the U.S. government's criminal investigation that was sparked by Palmer's lawsuit, Balakrishnan said this:

We are very clear that we have not violated any of the rules. We believe we have a strong case so the whistle blower case is not a visa case, it is a whistle blower case that will come up for trial somewhere in August. We have to fight it out through the legal process.


The other one is a Department of Justice Investigation we are cooperating with them, we are giving all the data. We believe, we have a strong case and see how it goes.

Now, to be clear, when Balakrishnan said Palmer's case is "not a visa case," in a sense, he's right. Palmer's case is a suit against Infosys for the retaliation and harassment he has endured as a consequence of filing his whistleblower report, which documented the illegal visa activity. So in that sense, Palmer's whistleblower report is a visa case, while his lawsuit is a harassment and retaliation complaint. It's obviously dissembling to try to disassociate Palmer's lawsuit from the visa element, but it is certainly the case that Palmer is suing Infosys for damages related to the harassment and retaliation, not for visa fraud, which is a criminal matter. That's why the federal government stepped in to pursue the criminal case.


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Feb 8, 2012 1:17 AM Don Tennant Don Tennant  says:

Reply to "Richard": I'm deleting your comment because of the hateful reference to people from India. If you have to engage in hate speech, take it someplace else.

Feb 8, 2012 2:16 AM Richard Richard  says: in response to Don Tennant

Sorry dan. Wanted to bring truth as it is. Will eb careful of my words next time.

Feb 8, 2012 4:00 AM R. Lawson R. Lawson  says:

"So he would be well advised to change his story before he's questioned under oath."

If he says something different under oath and Infosys stocks take a dive (assuming they are convicted of something) could he be exposing Infosys to future litigation?

Investors have been known to sue for damages when company executives mislead them or make false statements on issues that can impact financials.

Being intellectually honest for a moment, I really don't care if Infosys investors lose money or if they are being deceived by the company.  So maybe I'm not the person to opine on this since I would probably cheer an Infosys against the ropes.  My view is that the way to correct bad corporate behavior is to punish the investors.  When they feel it in their pockets, that behavior will stop.  So I want them to feel financial pain - the same amount of pain people their company discriminated against feel.

Feb 8, 2012 9:08 AM Mark Mark  says:

Interesting Letter from Iowa Senator Grassley's to President Obama regarding our current policy on H1B's

Feb 9, 2012 7:01 AM Elsa Elsa  says:

While it definitely sounds like there's more going on here than visa infractions, I think this whole issue highlights the urgent need to streamline U.S. visa regulations. Byzantine policies only encourage illegal behavior.

Feb 9, 2012 9:14 AM hoapres hoapres  says: in response to Mark

Grassley's letter is going straight to the circular file.

Feb 10, 2012 4:50 AM ITJob ITJob  says: in response to George Alexander

Here is one interesting education rate analyzed among OECD member countries...

Got the pdf from

Section of the report

The Organization for Economic Co-operation and Development analyzed education rates in its member countries and found that the U.S. is below average in the relative number of 25- to 34-year-old workers who have a degree in so-called STEM fields such as science, engineering, computing and statistics.

That's a potential problem because research has shown that innovation in any economy depends on how many workers have such degrees, said Ronald Ehrenberg, director of the Cornell Higher Education Research Institute.

'It is something that we should be concerned about,' Ehrenberg said

There are about 1,472 math and science grads for every 100,000 employed 25- to 34-year-olds in the United States, according to the data. The compares to more than 3,555 in Korea, which leads the chart, according to the OECD figures based on 2009 data.

The United States falls between Spain and Iceland on the chart, and is noticeably lower than the OECD average. The figures do not reflect how many people with STEM degrees are actually employed in their field or using the skills they learned.

Feb 10, 2012 10:56 AM ITJob ITJob  says: in response to Mark

Grassley's letter is great but did he put effort to understand the reason behind Mr.Wedel not able to get job?

Nothing wrong to expect a job in my home town but if I couldn't find one for 3yrs then I should know I'm living in wrong location for my skill set, but blaming someone else for my choice is seems to the wrong part.

Oh, lets blame H1b who long as blame is not on me I'm fine.

Here is the problem Mr.Wedel faces now...he wants a job where he lives unfortunately no company where he lives.

Here is the real story from his own mouth...but his wife twisted it the way she wanted it.

"Wedel told The Washington Post he was laid off because of a plant closing."

And when he got job offers...

Jennifer Wedel said her husband has gotten calls from around the United States. The White House contacted some of the companies on the Wedels' behalf, she said.

"We had the head guy from Intel call us and basically said, 'If you move to New York, we'll get you a job.' ... It kind of gets me teary-eyed, because I wish we could," Jennifer Wedel said.

Darin Wedel turned down the offer from Intel as well as three other out-of-state jobs and one in Austin because his custody agreement does not allow him to move away from his daughter's mother, who lives in the area.


Feb 10, 2012 11:57 AM George Alexander George Alexander  says: in response to ITJob

H1-b has conveniently become a scapegoat for some people who 1. can't get a job because they can't and 2. those who can get a job but won't.

Mr Wedel's problem is not with H1-Bs but with his circumstance (#2).

Feb 12, 2012 10:29 AM DaTruth DaTruth  says: in response to ITJob

Infosys is pathetic and so is their CFO and executives, and most of mid level management have just stuck on for last 10/15 years and have not worked any other firm. Hence there is no broad vision or understanding of the problems. These guys operate as cheap bodyshops and have no processes at all.

In one case there were meetings so that employees don't file overtime and how to keep the knowledge of exempt/non-exempt hidden from employees. Employees who do file are sent back to India at the first opportunity.

These guys need to be penalized and taught a lesson. America, please wake up! Don and others better try to reach out to more media and highlight this as a serious issue very soon.

Feb 13, 2012 1:51 AM Richard Richard  says: in response to ITJob

Dude the fact you brought has nothing to do with Indian IT bodyshops. Please dont remain gullible to the fact that these bodyshops have some real genius engineers or scientists to begin with. These bodyshops do low end work and also cheat America/Europe to make more money. The real engineering genius of India do not work for these Indian IT bodyshops, they do research or do other jobs.

Feb 13, 2012 1:53 AM Richard Richard  says: in response to DaTruth

Interesting. One more example of how Infosys cheats. Can you please bring more facts related to the cheat behavior you saw


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