Infosys, India's second-largest software services provider, said it was being investigated in Texas over its sponsorship and use of short-term US business (H1-B) visas.
The IT giant said it received a subpoena last May from the US District Court for the Eastern District of Texas to provide documents to a grand jury related its use of B1 visas.
In a US Securities and Exchange Commission filing on Wednesday, the company said it has now been told by the US Attorney's Office that the company and some of its employees are targets of the investigation.
"We want to reiterate that we are cooperating with the investigation and that we've never had a policy of visa misuse," Infosys spokeswoman Sarah Vanita Gideon said.
Gideon said she could not immediately say how many B1 visas Infosys had applied for or been granted.
B1 visas allow companies to send their employees to the US for short-term business purposes. These are meant for staff visiting the country for meetings, conferences and business negotiations.
The subpoena was issued at a time when Infosys was also facing a lawsuit by its employee Jack Palmer, who filed a complaint with a US court stating that the company was sending employees on B1 visas to work full time in the US.
Palmer, in his lawsuit, has alleged that this was done to overcome H1-B visa caps.
H-1B visa is a non-immigrant visa that allows US employers to temporarily employ foreign workers in certain high skilled occupations.
- With inputs from agencies