L&T Technology Services (LTTS) has agreed to pay $9.93 million (around Rs 81.4 crore) to the United States Justice Department to settle charges of work visa law violations between 2014 and 2019.
The US Justice Department in a statement on Monday said that the IT services company acquired less expensive B1 work visas than costlier and limited H-1B visas between 2014 and 2019.
Visa fee for B-1 work visas, which do not allow paid labour in the US, is around $200-300 while H-1B visas, under which paid labour can be undertaken, cost around $4,000-6,000. It’s difficult to obtain H-1B visas as such visas for foreign nationals have been capped at 65,000 per year.
L&T Technology Services allegedly acquired B-1 visas in place of H-1B visas in violation of the False Claims Act.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
In response, L&T Technology Services said that it had been cooperating with the government on this matter for over three years and is pleased to have reached a resolution. "Adherence to the laws of the land and visa compliance are a priority for LTTS, and we have devoted significant resources and time to update and enhance our internal controls, processes, and policies to ensure they continually conform with the complex and evolving regulations," the company spokesperson said.
The spokesperson further mentioned that there will be no impact on the company's financials due to the settlement as the amount has already been provided for over the past quarters.
L&T Technology Services Ltd (LTTS) is a listed subsidiary of engineering conglomerate Larsen & Toubro Ltd. It offers consultancy, design, development and testing services across the product and process development life cycle.
Shares of L&T Technology Services are trading 1.3 percent lower at Rs 3,545.05.
(Edited by : Rukmani Krishna)
First Published: Apr 11, 2023 11:58 AM IST
