India-US Strategic News and Discussion

TKiran · Post by **TKiran** » 15 Mar 2014 12:05

PB should have indicted DK within 30days of her arrest. Now he has to arrest DK, then take 30 days time to indicht her. that means he got only arrest warrant for DK. This fella's obsessed with DK strip search. I toldza, theres sexist angle to it. Psychopaths or paedophiles have compulsions.

RKumar · Post by **RKumar** » 15 Mar 2014 13:41

What a shame .. USA is creating an opponent if not enemy. State Department is either forgetting they are dealing with equal parts in India or they are underestimating the MEA of India. USA south Asia policy was/is flawed since 1947 to foreseeable future.

Let the USA live in their dream land. I sincerely wish, we do arrest some smuggler diplomats.

I guess, relations with US will go into complete spin in this year and next couple of years. US will go back to fully support Pak with all legal and illegal ways. India has to higher it guard.

RKumar · Post by **RKumar** » 15 Mar 2014 13:57

US has to deal with two MEA .... Indian MEA and Russian CriMEA

SSridhar · Post by **SSridhar** » 15 Mar 2014 14:52

It is high time India issues an arrest warrant for one or more of the American Embassy or Consular officers (serving or expelled or ex) for financial fraud in the American School case. Unless the US is returned favours, it won't learn.

Pratyush · Post by **Pratyush** » 15 Mar 2014 15:33

In addition to the above, the Warrant has to be challenged along with the extraction of the maid and her family. This needs to be presented as a case of human trafficking.

The crime if committed was committed by the Maid and the Preet Bahara and not by DK.

chanakyaa · Post by **chanakyaa** » 15 Mar 2014 19:16

http://www.advanfort.com/Indian-officia ... d-crew.pdf

Indian officials extend custody of Advanfort vessel and crew

The judicial magistrate in Tuticorin, C. Kathiravan, today extended the custody of the AdvanFort-35 until March 14 after hearing arguments through video conferencing. The Advanfort-35 is the name dubbed to the 35 crew members who were captured by the Indian authorities in October of 2013. They were alleged to have entered Indian waters illegally with the AdvanFort vessel, the Seaman Guard Ohio. The company has since been working for the release of its ship and crew.

Despite the custody extension the company has expressed optimism about the situation. Acting President Al Farajallah said, "It is essential that we continue to stand up for AdvanFort-35 until they are liberated. Nevertheless, we’re enormously pleased – this really is a step in the right direction.”

AdvanFort is not the only one who is optimistic about their release, nearly 2,500 people worldwide have signed a petition expressing their support for the release of the prisoners. The company is still offering counter-piracy services, but has recently undergone a major internal restructure to improve its quality control, and to exhibit the level of commitment they have to ensuring that this incident does not repeat in the future.

Philip · Post by **Philip** » 16 Mar 2014 02:17

How the illegal occupation of Diego Garcia and eviction of the native islanders by the Anglo-American conspiracy ,to turn DG into a massive nuclear weapons and communications base ,has poisoned the pristine waters of the lagoon by dumping the shit and refuse of the uniformed scumbags of the US armed forces into the sea! Britain in a secret note refers to the islanders in a racist manner calling them "Man Fridays".

http://www.independent.co.uk/news/uk/ho ... 93596.html

US Navy vessels have been discharging waste water, including treated sewage, into the clear lagoon
Cahal Milmo

Chief Reporter
Saturday 15 March 2014

The American military has poured hundreds of tonnes of human sewage and waste water into a protected coral lagoon on the British-owned base of Diego Garcia over three decades in breach of environmental rules, The Independent can reveal.

The Indian Ocean base on the Chagos Islands has been one of the world’s most isolated and controversial military installations since Britain forcibly removed hundreds of islanders in the early 1970s, abandoning them to destitution, to make way for US forces including nuclear submarines and bombers.

The British Government has repeatedly underlined its commitment to maintaining the pristine environment of the islands, which are known as the British Indian Ocean Territory (BIOT) and were four years ago declared the world’s largest marine reserve.

Despite these undertakings, it has emerged that US Navy vessels have been discharging waste water, including treated sewage, into the clear lagoon ever since a naval support station was established on Diego Garcia in the early 1980s.

According to scientific advisers, elevated levels of nutrients caused by the waste – which have resulted in nitrogen and phosphate readings up to four times higher than normal – may be damaging the coral.

Friday night, campaigners fighting for Chagossians to be allowed to return accused the British and US authorities of double standards by using the unspoilt character of the archipelago as a reason to prevent repopulation while themselves creating pollution.

Philippa Gregory, author and patron of the UK Chagos Support Association, said: “While the people who were born and bred on Chagos are not allowed to return to their island, the military base of Diego Garcia houses about 5,000 US servicemen and women and ancillary workers. It makes no sense to suggest that Chagossians cannot return because of pressure on the environment.”

The tiny atoll, also home to about 30 Royal Marines, is one of Washington’s most important strategic air and naval bases, used as a key staging post for US bombing raids against Saddam Hussein and the war in Afghanistan. The UK territory was also used for two CIA “extraordinary rendition” flights carrying terrorist suspects in 2002.

The discharge practice came to light last year but has only now become public after the Foreign and Commonwealth Office (FCO) deposited a written statement in Parliament.

Foreign Office minister Mark Simmonds wrote: “In April last year it came to our attention that the US vessels moored in the lagoon had been discharging waste water into the lagoon since the establishment of the naval support station there in the early 1980s.

“This waste water is treated sewage, and water left over from routine processes like cleaning and cooking.”

Mr Simmonds conceded that the waste was being pumped into the lagoon contrary to British “policy” and could be resulting in damage to the coral, which is protected under the intergovernmental Ramsar Convention on wetlands. It is not known how much waste has been discharged and how often, but a large vessel can generate several tonnes of watery waste and sewage per day, suggesting that hundreds of tonnes will have been discharged in the past 30 years.

Mr Simmonds said: “Our policy has consistently been that any form of discharge of these substances into the lagoon is prohibited because of clear scientific advice that it would be damaging to coral in the long term. That advice has not changed, and nor has our policy. UK scientists concluded that, based on available data, there were elevated levels of nutrients in the lagoon which could be damaging to coral.” The FCO said a study was under way to assess the health of the coral.

Britain insists it has “stringent environmental legislation” in place to protect Diego Garcia, which counts as British territory and is overseen by a Royal Navy commander known as the British Representative. But it is unclear whether it has taken any formal enforcement action against the US Navy.

When asked by The Independent whether US authorities had received any notice of breach of UK law or been prosecuted or fined, the FCO said: “Since identifying this issue in April last year, we have worked with our US partners to assess the scale of the problem and rapidly agree a comprehensive mitigation plan that is now well under way.”

Britain has repeatedly used the need to conserve the Chagos Islands as a reason for denying longstanding calls by Chagossians to be allowed to return. A leaked diplomatic cable from 2010 revealed how British diplomats believed the creation of the marine reserve would ensure no “Man Fridays” arrived on the islands and “put paid to resettlement claims of the archipelago’s former residents”.

Hitesh · Post by **Hitesh** » 16 Mar 2014 07:04

India needs to indict Willie Mays for illegal activities that he conducted such as subverting the justice system in India and obstructing justice and aiding and abetting a fugitive, all felonies, in which the arrest warrant would be subject to Interpol.

A tit for tat measure.

vic · Post by **vic** » 16 Mar 2014 07:52

Govt is not even able to issue tax notices to American School, I don't see it taking any other action against Mays.

disha · Post by **disha** » 16 Mar 2014 09:10

chaanakya wrote:Preet Bharara will not bend, indicts Devyani Khobragade again

...

But the ruling had given Bharara leeway to re-indict her by indicating the immunity was good only as long as she was assigned to the UN in New York, and the prosecutors were free to charge her anew since she had moved on from that window.

Given the above information., Piglets' point is that the first indictment was thrown out because DK had a diplomatic immunity as a UN rep. However since DK is now *not* a UN rep, does not have a diplomatic immunity and hence can be arrested.

It is like saying "we think a crime is committed and that is for the court to decide, but cannot arrest her because of her diplomatic immunity" vs. "now we can arrest her because there is no diplomatic immunity since the said person is not a diplomat at UN or even in India"

Of course, how are they going to arrest her? They can issue a red corner notice or some interpol notice which India maybe bound to honor because of Geneva protocols (Indians also need to sometime get anti-India elements arrested in US - right?). <--- This is what I was thinking the piglet has up his sleeve. This may serve no purpose other than put Indian Govt. in a less negotiable place.

Now we do hear about DK having some 11 flats in India and some cases of giving 90 lacs in Adhaar case over the table and 30 lacs under the table. So now DK "will be made to face the Indian law first" and hence going no where. And you know how committees and Indian law sometimes takes its own course.

However no case has been filed against DK, why file one when a notice has not arrived!! And there are other alternatives MEA can proceed as well - like making some American diplomutts sqeal and red-cornered.

There are times when you leave things in grey area and not proceed quickly and show your hands. Just be prepared to have a great squealing season where pigs everywhere will be squealing.

disha · Post by **disha** » 16 Mar 2014 09:15

^^ Note,

I do not think the game here is to bring "DK to justice". The game is definitely something else.

1. I am of the theory that DK was undercover (look at Pappa Khobragade hopping mad, indicating this is a war on India!!!!)

2. Second plausible theory is that DK (and other Indian diplomats) will be used as pressure points for realising their mercenaries.

Did the Americans as they blunder around forget that they also have pressure points? At this stage the US SD is behaving like an headless chicken.

This needs to be understood by everybody:

Even American State Department behaves like a headless chicken.

Shreeman · Post by **Shreeman** » 16 Mar 2014 09:33

vic wrote:Govt is not even able to issue tax notices to American School, I don't see it taking any other action against Mays.

One of the things that needs to be done is to let Arshack do his thing for as long as it is needed. Rathen than this "will not engage" bit. The whole chai-biscuit, or whatever else in Delhi needs to be disconnected, parallel, and continuous. Wont happen, but that is the right course and money better spent than hosting SD visitors.

JE Menon · Post by **JE Menon** » 16 Mar 2014 15:10

That is exactly what will happen. We will engage. There is money to be made. Things to be done. But we now have a clearer grasp of American mindsets, and they have of ours. It's strictly business, and will be, more be more. This is how big powers behave. And we revel in this shite. They are missing an opportunity because of blockheadedness

UlanBatori · Post by **UlanBatori** » 16 Mar 2014 16:46

From MEA:

He also made it clear that as far as India was concerned, "we reiterate that the case has no merit. Therefore this second indictment has no impact on our stated position. Now that Dr Khobragade has returned to India, the court in the US has no jurisdiction in India over her. The government will, therefore, no longer engage on this case in the US legal system."

Disappointing response. Hope clear instructions have been given to Arshack to kick musharraf-e-PB in the US court to the fullest extent, and sue for civil damages.

As well as instructions to Dilli polis...
My opinion is that PB is on his last desperate move. His case is collapsing with the SR/DUI spat. If he does NOT keep this dragging, SD will be under pressure to deport DUI - how are they going to extend his T-2 otherwise? Then if India files extradition request on SR, the fat is in the fire. If DUI leaves, his last witness is gone anyway. If DUI testifies, on cross-examination he will tell the jury that SR is a liar.

So he is braying that GOI will blink and not move any more. I HOPE GOI are not that stupid.

These are on top of all the huge holes in his case. I thought Arshack was going to fine another Motion to Dismiss on the rest of the points in his initial motion. If he gets dismissed again, its going to be

time.

vic · Post by **vic** » 16 Mar 2014 19:28

I think the cowards in this Govt has no appetite to engage USA. Taking a beating even in election year shows that USA has some goods on the waitress and this Govt is in fear of being made nanga by US SD department.

saip · Post by **saip** » 16 Mar 2014 19:47

ramana wrote:This grand jury business seems to be a made to order indictments r us outfit for US prosecutors to issue warrants.

The grand juries will indict a monkey if the prosecutor so wants. They don't see or hear the other side's evidence and the witnesses are not cross examined.
Even the prosecutors once they make up their mind want to win, justice be damned. For this end they will do everything including hiding the evidence and coaching the witnesses. I guess it is done all over the world and US is no exception. Look it this case where one Gloria Killinan was sent to jail for 34 years for a crime she did not commit and ultimately was freed after 17 years (in India she would have been out in 14 years even if she did the crime!). The prosecutors hid the letters written by them and the only witness (also the accused) against her where he claimed he was lying on the witness stand and where the prosecutor wrote to the judge recommending leniency because of his cooperation. These letters were never shown to the defense counsel of Gloria. At the end the prosecutor was a let off with an 'admonition'

Link

Philip · Post by **Philip** » 16 Mar 2014 20:21

The UPA under Surrender Singh surrendered the country to Yanqui interests without a bullet being fired years ago. The manner in which Congressmen have refused to stand for election speaks for itself.They have surrendered the fight before a ballot has been cast! Whether it be bullet or ballot,the vermin are fast deserting the sinking ship,as the "Boy" stands on the burning deck sucking his thumb, then ranting and raving at the winds of change blowing the burning SS.Congress onto the breakers.

The Yanquis,are now desperate to funnel the anti-UPA vote into another bunch of eunuchs and marionettes.Their stooge,Kejriwal and his bunch of street thugs like the mercenaries in the Ukraine and Arab world,are doing their worst to derail Mr.Modi from cruising to victory.Fartacus opposing Modi in Varanasi is meant deliberately to prevent him from touring the country winning votes. I was in madras a few weeks ago and even a staunch DMK taxi driver by bane Lenin,wanted Modi to become PM!

The CIA is doing everything to prevent Modi and the BJP from coming to power using every dirty trick in the book.The planned Hazare-Mamta tie-up planned by the Yanquis collapsed spectacularly.The fringe elements are now being wooed relentlessly to garner as many seats for the turd front which will be supported by the dismembered Congress and its UPA alllies ,in an attempt to prevent the BJP/NDA from deservedly coming to power.

putnanja · Post by **putnanja** » 16 Mar 2014 22:06

Khobragade incident 'extremely irksome', time for closure: Salman Khurshid

...
Asserting that there were "practical considerations" and India cannot look unconcerned when something like this happens, he said the court by rejecting the first indictment has given an opportunity to US administration to put it behind and questioned why they were not doing so.
...
...
"Even at the worst time, I made repeated statements that although it is extremely irksome what has happened and we are convinced that what has happened is wrong and it should not be taken any further, nevertheless this should not impact our larger relationship. But there are practical considerations.

"We cannot look unconcerned when something like this happens. We have to balance practical implications with our commitment to keep our relationship intact and in fact, enhance it," the minister said in an interview.
...

Observing that "overall it has an effect and there was very deep sense of hurt here", Khurshid said "the court by rejecting the indictment has given you an opportunity to put it behind us so why are we not putting it behind us... They should find a political solution."

Referring to his meeting with his US counterpart John Kerry on the issue, he said, "We have already agreed that officials from both sides will meet to look into issue of immunity and privileges so that in future there is no trouble. When you are looking at no trouble in future, it is an ideal thing would be to put a closure to what has happened."

Khurshid also said India was convinced that there were no justified grounds for what they have done.
...

Haresh · Post by **Haresh** » 20 Mar 2014 02:28

CIA Iran Chief Suspended, Department ‘Was Not Functioning’
http://www.algemeiner.com/2014/03/17/ci ... nctioning/

" U.S. officials believe Pakistan’s intelligence service leaked his name in a dispute over CIA drone attacks."

Why are the Americans so intent on making a foe of the only real ally they have in the region???

ramana · Post by **ramana** » 20 Mar 2014 02:37

That leak was old news. This suspension was due to lack of leadership qualities.

Shreeman · Post by **Shreeman** » 20 Mar 2014 05:34

It is disturbing that the DK situation will be left at "open indictment, pending arrest warrant". At least last time there was bail and ongoing legal process. For every MEA official who will take this in their stride, there will be a hundred who will now be "pliable" and be looking over their own shoulders. The NY situation in particular becomes completely untenable. Who will want to go there?

UlanBatori · Post by **UlanBatori** » 20 Mar 2014 07:07

AmberG, any new stirrings from Arshack?

chetak · Post by **chetak** » 24 Mar 2014 07:45

The vise seems to be closing around some amreki testimonials.........

US embassy faces I-T inquiry, urges 'understanding'

An income tax inquiry now threatens the delicately poised Indo-US relationship, highly-placed government sources have told HT. The ministry of external affairs (MEA) has conveyed the inquiry details to the US embassy. Coming close on the heels of the spat involving diplomat Devyani Khobragade, rattled American diplomats are now urging India to arrive at ''an understanding.''

Despite reminders from the MEA, the US embassy, is yet to provide details of how many teachers are employed at the American Embassy School in violation of visa and tax laws.

The inquiry into what officials believe could be 'a multi-crore tax evasion' saw the issue being raised by assistant secretary of state, Nisha Biswal, during her first visit to India, earlier this month. Confirming the information, MEA Spokesperson Syed Akbaruddin told HT, "These issues were raised before the assistant secretary of state. We intend to address them through the mechanism of a working group."

Soon after Khobragade's arrest and strip search last December, MEA had sought detailed information on how many teachers were employed at the school, their salaries and bank account details. When asked for a comment on the probe, a US embassy spokesperson said, "We continue to engage in discussions with our Indian counterparts on all issues that have been raised through appropriate diplomatic channels."

In a major embarrassment for the embassy, the New York Times had published an article in January, establishing that the teachers were in violation of Indian tax laws, because they were advised in a circulated handout to wrongly represent themselves as housewives. Quoting from the handout, NYT had said, "we usually have the male spouse apply for the 'employment' visa and the female spouse be noted as 'housewife' on the visa application."

Facing the income tax heat, the US now wants to settle the issue through a broader understanding that, government sources say, would be accommodative of India's concerns. The US is caught on the wrong foot because the school has violated the 1973 agreement according to which India had granted tax exemption status to only 16 teachers.

While sources said it was too early to say if a deal could be worked out, India is keen on settling two issues to avoid a repeat of the Khobragade affair. For one, it wants to settle the privileges and immunities of its consulate staff, which are currently not at par with diplomats. Secondly, India wants domestics employed by diplomats in US to be subjected to Indian law, were another dispute to arise, as it did in the case of Khobragade and her domestic help, Sangeeta Richards.

chaanakya · Post by **chaanakya** » 24 Mar 2014 10:40

We have to see when ED steps in. That would bring power to arrest as well.

chetak · Post by **chetak** » 24 Mar 2014 11:00

chaanakya wrote:We have to see when ED steps in. That would bring power to arrest as well.

The lily livered bunch at the MEA under salman the kursed, will leave it to the next government onlee.

Mahesh_R · Post by **Mahesh_R** » 24 Mar 2014 11:19

^^^ unfortunately the new govt will need settling time before the issue can be taken up and again why will anyone want to make relations worst when they are just starting on something new.. most probably this will kept on cold storage and will be used by next govt when any similar incidents happen.. till that time they have enough time to cover their tracks...

member_28352 · Post by **member_28352** » 24 Mar 2014 11:54

Obama is a weak president with no real clout in any US foreign policy matter. He is effectively sidelined and US foreign policy is run on the orders of others. His situation is like that of Bakistan's Badmash, who is in office but not in power. As in Bakistan, the real power holders are elsewhere. Oh the parallels between the US and Bakistan.

ramana · Post by **ramana** » 25 Mar 2014 19:20

Powell to be replaced if Modi becomes PM

After the trafficking visa scam by her minions the US SD should have replaced her on their own accord.

member_28502 · Post by **member_28502** » 29 Mar 2014 01:10

Sunni days for Saudi's hired gun Pakistan, as Obama visits Riyadh
Chidanand Rajghatta,TNN | Mar 28, 2014, 08.10 PM IST

http://tinyurl.com/lfoazr9

But these will be trifles as Obama deals with what White House sees as larger issues. He will also likely hear a laundry list of complaints from Saudis - the perceived US betrayal of Saudi interests arising from Washington's recent overtures towards Iran, to letting Riyadh down in Syria. In both countries, Saudis are fighting for Sunni influence in the region again Shia-dominated regimes. In neighboring Bahrain, it is backing a minority Sunni regime against a majority Shia uprising.

In fact, the Sunni axis that Saudi Arabia has forged comes close to India's borders, since Pakistan is the hired gun Riyadh has chosen to act as an enforcer. According to reports in the Pakistani media, Saudi Arabia transferred a whopping $1.5 billion to Islamabad earlier this month, ostensibly to shore up Pakistan's economy.

While the Nawaz Sharief government confirmed the transfer as "no-strings-attached" grant from a "friendly" government, the scuttlebutt in strategic circles is that it is payoff for Pakistani foot-soldiers waging Saudi bankrolled jihad in Bahrain and Syria, among other places.

In fact, Washington's biggest fear is that the Saudis are also making sure they have access to the Pakistani nuclear arsenal just in case the US easing of pressure on Teheran results in Shiite Iran going nuclear. The Saudis have said as much, that they will be forced to go nuclear if Iran does. The Saudis are also ticked off with Washington over events in Egypt, where Riyadh is opposed to the Muslim Brotherhood, whose deposed ruler Mohammed Morsi, was backed by Qatar, home to the satellite channel Al Jazeera, which is also seen as being inimical to the Saudi Kingdom.

President Obama enters this snakepit at a time the sentiment in the US is increasingly to withdraw from regions where Washington has no strategic interest. Indeed, the rapid decline in US dependence on middle-east oil, affords this.

But the flip side is Washington's withdrawal will enable the spread of both toxic Sunni fundamentalism and Shiite resurgence that will come with an invigorated Iran. Both developments will bring trouble to the India-Pakistan region.

I had said that Ombaba will ask KSA ferment trouble in Dagestan, Ingushetia and Chechneya in Ukraine thread notice the proximity to Black sea areas and Ukraine

http://www.flickr.com/photos/38611103@N ... otostream/

ramana · Post by **ramana** » 29 Mar 2014 04:56

There was a picture with Ombaba dressed in Haj clothes. This above story reminded me of that.

chaanakya · Post by **chaanakya** » 29 Mar 2014 22:41

chetak wrote:The vise seems to be closing around some amreki testimonials.........

US embassy faces I-T inquiry, urges 'understanding'

An income tax inquiry now threatens the delicately poised Indo-US relationship, highly-placed government sources have told HT. The ministry of external affairs (MEA) has conveyed the inquiry details to the US embassy. Coming close on the heels of the spat involving diplomat Devyani Khobragade, rattled American diplomats are now urging India to arrive at ''an understanding.''

Despite reminders from the MEA, the US embassy, is yet to provide details of how many teachers are employed at the American Embassy School in violation of visa and tax laws.

The inquiry into what officials believe could be 'a multi-crore tax evasion' saw the issue being raised by assistant secretary of state, Nisha Biswal, during her first visit to India, earlier this month. Confirming the information, MEA Spokesperson Syed Akbaruddin told HT, "These issues were raised before the assistant secretary of state. We intend to address them through the mechanism of a working group."

Soon after Khobragade's arrest and strip search last December, MEA had sought detailed information on how many teachers were employed at the school, their salaries and bank account details. When asked for a comment on the probe, a US embassy spokesperson said, "We continue to engage in discussions with our Indian counterparts on all issues that have been raised through appropriate diplomatic channels."

In a major embarrassment for the embassy, the New York Times had published an article in January, establishing that the teachers were in violation of Indian tax laws, because they were advised in a circulated handout to wrongly represent themselves as housewives. Quoting from the handout, NYT had said, "we usually have the male spouse apply for the 'employment' visa and the female spouse be noted as 'housewife' on the visa application."

Facing the income tax heat, the US now wants to settle the issue through a broader understanding that, government sources say, would be accommodative of India's concerns. The US is caught on the wrong foot because the school has violated the 1973 agreement according to which India had granted tax exemption status to only 16 teachers.

While sources said it was too early to say if a deal could be worked out, India is keen on settling two issues to avoid a repeat of the Khobragade affair. For one, it wants to settle the privileges and immunities of its consulate staff, which are currently not at par with diplomats. Secondly, India wants domestics employed by diplomats in US to be subjected to Indian law, were another dispute to arise, as it did in the case of Khobragade and her domestic help, Sangeeta Richards.

yes, could have been compromised and blackmailed by GOTUS

U.S. Accuses Infosys of 'Fraud and Abuse' in Visa Case

As it prepared its workers to take on jobs at major U.S. companies, Indian outsourcing giant Infosys Ltd. provided them with written instructions on how to deceive U.S. authorities about the type of work they would do, and furnished them with inappropriate visas to lower its cost of doing business, federal prosecutors allege. ( HELLO MEA , do you remember similar advice given to American Embasssy School Staffers or have you swallowed your pride)

The technology company also entered numerous errors on forms meant to confirm its workers' employment eligibility in this country, part of a pattern one prosecutor called "systematic fraud and abuse."

While denying that it committed visa fraud, Infosys has agreed to pay the largest penalty ever for alleged immigration violations—$34 million—to close the investigation and conclude the civil case, according to a settlement and complaint unveiled Wednesday by the U.S. attorney's office in the Eastern district of Texas. The company acknowledged mistakes in filing the federal employment-verification records, known as I-9 forms.
Enlarge Image

Infosys is one of the largest outsourcing providers to U.S. companies. European Pressphoto Agency

The government originally pursued criminal charges against the company, which it says would have barred Infosys from obtaining U.S. visas and operating here. But immigration law is ambiguous regarding technology work, according to the lead prosecutor on the case, which gave Infosys attorneys leverage during six months of negotiating over a penalty.

Still, the high-profile case could prompt more stringent requirements for work visas as Congress drafts new immigration laws. It may also spur many corporations to examine their own potential liability in this area. It is already boosting government scrutiny of Infosys' competitors and other companies applying to bring foreigners to the U.S. to perform specialized work, said a State Department official.

Here is how Infosys' practices unfolded, according to federal prosecutors and investigators on the case:

From 2008 to 2011, Infosys "as a matter of practice" wrote "invitation letters"—documents submitted to and reviewed by U.S. consular officials and other immigration officials—that misrepresented the purpose of employees' travel, according to the government complaint.

For example, a letter submitted on or about July 3, 2008, for an individual referred to as MG in the complaint, stated his travel was for "customer discussions and related business development activities." In fact, "as known by Infosys," the complaint said, the individual would actually do coding and programming, work not authorized under short-term business visitor visas, known as B-1s.
Related

Infosys to Get Record Immigration Fine

The individual should have received an H-1 B visa, a long-term work visa that is more expensive and takes longer to acquire, said agents involved in the investigation, which stretched more than two years.

An H-1B visa typically takes months to be processed in the U.S. and costs about $5,000 per worker; each B-1 costs $160 and can be obtained in a matter of days at a U.S. consular office abroad.

"To circumvent the requirements, limitations and governmental oversight of the H-1B visa program, Infosys committed visa fraud by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders," according to the complaint.

In a review of 6,500 B-1 visas used by Infosys employees, investigators found hundreds of instances of the documents being used improperly, according to Shamoil Shipchandler, the lead prosecutor in the case.

The federal investigation was conducted jointly by the Department of State's Diplomatic Security Service and Immigration and Custom Enforcement's Homeland Security Investigations. The immigration agents found an 84% error rate in the company's I-9s, work-authorization forms that employers complete for each employee, according to an official close to the investigation.

Infosys distributed a "Do's and Don'ts" memorandum to foreign nationals to help them appear that they qualified for a B-1 visa, according to the complaint. For example, they were instructed to "not mention activities like implementation design and testing consulting etc., which sound like work." They were told to avoid using terms like "work" and to "not mention anything about contract rates."

Infosys directed employees to inform customs and border protection officers at airports that their destinations were those listed on a "labor condition application" to avoid additional paperwork and scrutiny, according to the complaint. For example, on or about Oct. 28, 2009, Infosys allegedly directed an individual cited as VG to tell U.S. authorities that he was destined for Seattle when his destination was in fact Bentonville, Ark.

In the settlement, the company said its use of B-1 visas was for "legitimate business purposes" and "not in any way to circumvent the requirements of the H-1B program."

"There's absolutely no evidence that these B-1 visas were used for competitive advantage or to save money or for some illegal scheme—those allegations are not true," said Stephen Jonas, Infosys' lead attorney on the case.

Mr. Jonas acknowledged that the company distributed a memo on how to proceed through immigration. But he says many large organizations that operate internationally, including some U.S. agencies, give employees similar guidance. And while employees were encouraged to use certain terminology when speaking to officials, they weren't instructed to lie, Mr. Jonas said, adding that the memo has since been taken down. "The government hasn't indicated in all these years a single incident when a consular officer was actually deceived," he said.

While the settlement allows Infosys to continue to operate without restrictions on its use of U.S. visa programs, the investigation and fine cast a pall over one of the world's largest outsourcing companies. Bangalore-based Infosys, which made $1.73 billion in net profits for the fiscal year that ended last March, employs 157,000 people and operates in 30 countries. Its U.S. clients have included big-name Wall Street banks, Silicon Valley companies, retail chains and manufacturers, according to investigators. Dow Jones, the company that publishes The Wall Street Journal, is a client of Infosys.

"Their checks and balances and due diligence were totally lacking," the person said. Although the fine is a record for an immigration case, prosecutors had weighed tougher penalties, Mr. Shipchandler said. But immigration law isn't always clear regarding work in the technology field, he said, which strengthened Infosys' position during negotiations, he said.

In recent years, Homeland Security agents have stepped up scrutiny of I-9 forms from meatpacking plants, fast-food chains and other industries as part of a crackdown on the hiring of undocumented foreign workers. In Infosys' case, omissions and mistakes enabled employees to remain in the U.S. after their visas had expired, according to the complaint.

The company denies this was the case. In a statement, Infosys said, "There is no evidence that the I-9 paperwork violations allowed any Infosys employee to work beyond their visa authorization."

"It's not 100% clear what someone who holds a B-1 visa can actually do," Mr. Shipchandler said.

For example, placing someone within a company for six months to do in-house tech support is an improper use of a B-1 visa. But if a consultant helps refine software during a meeting with a client, as part of a larger project, that could be seen as an appropriate use of a visitor visa, Mr. Shipchandler said. "It's a murky area, but for our purposes they misled consular officials."

The investigation was ignited by a February 2011 lawsuit by Jack "Jay" Palmer, an American employee who accused the company of harassment and breach of contract after he raised concerns about possible visa violations. A federal judge in Alabama, where Mr. Palmer worked, dismissed that case. Mr. Palmer cooperated with federal agents investigating the company.

Ken Behrendt, chief executive of Eagle Creek Software Services, a large IT service provider who formerly worked for an offshore company, said he saw "countless examples of companies manipulating or simply breaking the law in regards to visa policy."

The Infosys case could trigger Congress to pass laws that "make it more difficult for legitimate players to jump through immigration hoops to bring workers to the United States," said Susan Cohen, chair of Mintz, Levin immigration law practice in Boston.

Greater scrutiny already is reverberating across the outsourcing industry.

Consular officers are giving applicants from India's IT industry more scrutiny, a State Department security official says. Meanwhile, companies are paying closer attention to the "fine print" of the visa rules, says industry analyst Phil Fersht.

"The Infosys settlement sets the benchmark," said Ian MacDonald, an attorney at Greenberg Traurig in Atlanta who specializes in immigration compliance and has done risk-assessment work. "Any CEO who isn't ordering an immediate assessment of risk and financial exposure…is sitting on a time bomb that can not only result in tax, employment law and immigration liability, but also will likely cause negative publicity and possibly adversely affect stock pricing."

svenkat · Post by **svenkat** » 31 Mar 2014 21:03

nanny powell resigns,according to ndtv.

UlanBatori · Post by **UlanBatori** » 31 Mar 2014 21:35

Indian express says same thing:

In a sudden development, US Ambassador to India Nancy Powell has resigned from her post, days after media speculation that she may be shipped out.

“US Ambassador to India Nancy J Powell announced in a US Mission Town Hall meeting March 31 that she has submitted her resignation to President Obama and, as planned for some time, will retire to her home in Delaware before the end of May,” an announcement in the US Embassy website said tonight.

ramana · Post by **ramana** » 31 Mar 2014 21:55

She should have quit after the Mays disaster. Still a great career was brought down by minions

Prem · Post by **Prem** » 31 Mar 2014 22:02

ramana wrote:She should have quit after the Mays disaster. Still a great career was brought down by minions

It will be interesting to watch how long before the replacement is sent and weather it will be Political or Clerical appointment.

pankajs · Post by **pankajs** » 31 Mar 2014 22:24

Ramana saar she must have known about the special visa issued to the maids family when they were moved out of India. That special visa, being out of the ordinary course of embassy business, must have required her approval. She was as much felled by her own overreach as much by anything done by her minions.

UlanBatori · Post by **UlanBatori** » 31 Mar 2014 23:05

I feel that without a fullly publicized exposure and prosecution of the deliberate tax fraud by AES, GOI has absolutely no hope of getting any sort of traction with its begging for equal treatment. The US claims to have a clear demarcation between the exec and judicial branches, as the excuse for PB going full blast with his atrocities while Kerry and Nehal whatzit sweet-talk GOI about "putting it all behind us" etc.

It is only the NYT article that lit a fire on the USSD's tails. They are not fazed by articles in, say, TOI. So there need to be clear articles pointing to arrest, cavity search, indictment, incarcertation and prosecution of those who indulged in the long-term tax fraud. I don't really want them to be sent to jail for long terms, but just enough to have wide publicity in the US that the BO SD was actively instructing Americans to commit fraud, with copies of that Memo blaring out on See Enn Enn etc. Until all those happen, the GOI should sit on their thumbs as they do on most other things, and let the Dilli Polis do what they do best.

Madhusudhan · Post by **Madhusudhan** » 31 Mar 2014 23:10

After the debacle created by Obama & Co, the going rate for Indian Ambassador is probably going to be quite low.
http://www.bloomberg.com/news/2013-07-2 ... money.html

UlanBatori · Post by **UlanBatori** » 31 Mar 2014 23:34

UBC News is projecting 4 possible Winners for the post of US Ambassador to India -

4. the guy/gal who led "FAST and FURIOUS".
3. the recent Ambassador to Ukraine
2. the mohterma who did the *uck the EU comment.

1. But Bayesian Probability results with Doppler Shift, modifying our GUESS Predictor-Corrector, indicates a clear No. 1: The Mohterma-in-Charge, commanding the rollout of the Obamacare Website.

putnanja · Post by **putnanja** » 01 Apr 2014 00:25

US ambassador to India Nancy Powell resigns

...
Shunting Powell, a career diplomat on the verge of retirement, would have been an easy political move for the Obama administration.

However, the arrest of Indian diplomat Khobragade was Powell's primary debacle. She was seen as having failed to have warned the US system of the fallout of the crisis, say diplomatic sources.
...