Larsen & Toubro Technology Services, LTD (LTTS), will pay $9.9 million to settle claims of underpayment of visa fees in the US, said a statement by the South Carolina District US Attorney’s office on Monday.

LTTS has agreed to pay $9,928,000 to resolve allegations that between 2014 and 2019, the company underpaid visa fees owed to the United States by acquiring inexpensive B-1 visas, rather than more expensive H-1B visas, in alleged violation of the False Claims Act.

The investigation leading to this settlement was initiated through a whistleblower complaint in the United States District Court in Charleston, South Carolina. According to the allegations, the company hired foreign nationals, for its Edison New Jersey office, as employees on B1 visas (costing $200-$300) instead of the H1B visas that cost around $4000-$6000.

While B1 visas do not have a cap, they do not allow foreign nationals to perform paid labor. H1B visas are capped at around 65,000 per year and are meant for specialised skillsets.

The claims resolved by the settlement are allegations only, and there has been no determination of liability, said the attorney’s office. LTTS has denied liability, is cooperating with the United States in this matter, and has taken significant steps to ensure compliance with US visa laws.

“We have been cooperating with the Government on this matter for over three years and are pleased to have reached a resolution,” said an LTTS spokesperson adding that the settlement will not have any impact on the company’s quarterly and annual earnings to be reported later this month. The company has provided for the settlement amount over the past quarters, said the spokesperson.

“The US Attorney’s Office will hold accountable those who skirt this country’s visa requirements,” said US Attorney for the District of South Carolina Adair F Boroughs. The case was investigated by Homeland Security Investigations, the USCIS Nebraska Service Center Fraud Detection Unit, the US Department of State’s Office of Inspector General, the US Department of Labor’s Office of Inspector General, and the US Department of State’s Diplomatic Security Service.

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