Setback for Indian professionals? US suspends Cognizant green card filings in H-1B visa fraud probe

The United States has suspended Cognizant's permanent labour certification filings, the first step in the green card process, in a setback for the Chennai-founded IT company as the Trump administration steps up its campaign against alleged visa fraud. The move affects one of the biggest H-1B sponsors in the US and could lead to greater scrutiny of similar visa use at other large Indian IT firms.

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US announces suspension of Cognizant, Cloudera PERM filings

US Department of Labour Inspector General Anthony D'Esposito announced on Tuesday that permanent labour certification filings by Cognizant and Cloudera had been suspended after an investigation carried out in coordination with the White House Fraud Task Force and other officials. The department said the action would bar Cognizant from filing new PERM applications until its investigation into alleged fraud involving its H-1B and PERM programmes is completed.

Announcing the crackdown, he wrote on X, "Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt. Threats to American workers will NOT be tolerated. Alongside @WHFraudTF, we’re following facts, fraud and finances. Handcuffs await."

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What PERM means in the US green card process

PERM, or Program Electronic Review Management, is the process through which US employers seek approval from the Department of Labour to sponsor foreign workers for permanent residency. As part of the process, employers generally have to show that no qualified and available US workers exist for the job and that hiring a foreign worker will not hurt the wages or working conditions of American workers.

In July, the Trump administration launched a major investigation into alleged fraud involving the H-1B and PERM employment visa programmes. The suspension of Cognizant's PERM filings is the latest step in that action.

Cognizant's H-1B profile and wider scrutiny

Cognizant was founded in Chennai in 1994 and is now headquartered in Teaneck, New Jersey. According to data shared by the US Citizenship and Immigration Services, the company had received approvals for 3,510 H-1B visa petitions as of 30 June, compared with 9,413 in 2020.

Cognizant is one of the biggest H-1B sponsors in the US, and a federal jury has already found that the company discriminated against non-Indian workers in a separate case. The latest move could also bring more scrutiny on other big Indian IT firms such as TCS, Infosys, Wipro and HCL, as they rely heavily on the same visa programmes.

What does it mean for Indians?

Any disruption in the PERM pipeline could worsen delays for Indian professionals hoping to settle in the US. For Indians waiting to build long-term careers in the US, that raises the stakes further. With nearly one million Indian nationals already stuck in the employment-based green card backlog, any tightening of PERM filings at major employers could make an already difficult route even harder.

The suspension marks a fresh step in the US administration's action over alleged fraud in employment visa programmes, with Cognizant and Cloudera both coming under scrutiny and Cognizant barred from filing new PERM applications while the investigation continues.

(With inputs from PTI)