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Tata Consultancy Services (TCS), one of India’s largest IT outsourcing firms, is facing scrutiny over allegations of visa fraud in the United States. A former IT manager, Anil Kiki and two other ex-TCS employees — Vinod Govindharajan and Bedatanu Banerjee — accused TCS of systematically misusing L-1A visas to circumvent the US labour laws, bringing foreign workers into the country under less stringent requirements than those imposed on H-1B visa holders.
The employees filed lawsuits under the U.S. False Claims Act, claiming that TCS manipulated organisational charts to falsely present employees as managers, thereby securing L-1A visas unlawfully, reports Bloomberg.
According to Kini, he was instructed to alter company records to make the workforce appear more top-heavy in management, a tactic designed to evade scrutiny from federal agencies. Despite his resistance and subsequent whistleblower complaints, Kini alleges he was fired in retaliation in 2018. His case, dismissed earlier, is currently under appeal.
“TCS does not comment on ongoing litigation, however we strongly refute these inaccurate allegations by certain ex-employees, which have previously been dismissed by multiple courts and tribunals,” said a TCS spokesperson.
Government data obtained by Bloomberg through a Freedom of Information Act lawsuit shows that TCS secured 6,682 L-1A visa approvals from 2020 to 2023, over five times more than Infosys, the next highest recipient. Additionally, discrepancies emerged between the number of L-1A visas obtained and the number of managerial employees TCS reported to the Equal Employment Opportunity Commission (EEOC).
For instance, in 2022, TCS disclosed 599 managers in the United States but secured 1,969 new or renewed L-1A visas that year. Out of these 599 managers, 124 were classified as Executive/Senior Level Officials and Managers and 475 as First/Mid-Level Officials and Managers.
Beyond Kini’s claims, other former TCS employees have made similar allegations. Vinod Govindharajan, an Indian national, stated that TCS falsely classified him as a manager under an L-1A visa in 2013 and paid him significantly less than his American counterparts. The EEOC found “credible documentary evidence” of systemic underpayment and visa fraud within TCS but lacked the authority to enforce immigration and wage laws.
Govindhrajan’s lawsuits were ultimately dismissed due to an arbitration agreement signed in India.
Another former employee, Bedatanu Banerjee, filed a lawsuit in 2016, asserting that TCS fabricated organisational charts and coached employees on falsifying resumes to meet visa criteria. His case, like Kini’s and Govindhrajan’s, was dismissed before reaching trial.
Analysts suggest that TCS’s practice of utilising L-1A visas is a cost-cutting strategy. Unlike H-1B visas, which are capped at 85,000 and have specific pay requirements, L-1A visas are not subject to a cap and do not have such pay requirements. According to experts, this is likely a key factor contributing to TCS’s highest profit margins among IT companies.
However, despite multiple allegations, the US government has not pursued legal action against TCS. The Department of Justice declined to join the whistleblower lawsuits, and federal oversight of L-1A visa abuses remains limited.
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