Infosys Ltd., has announced that it has entered into a settlement with the U.S. government in the amount of USD34 million, according to a report by Reuters. The case involved incidences in which Indian firms would send workers to U.S counterpart sites armed only with temporary visas.

According to the U.S. Department of Justice, the fine was just in time because U.S. legislators are considering stricter visa reform legislation. This would make it difficult for Indian IT firms to send workers to the U.S. on temporary visas.

"It is likely to add more fuel to the ongoing debate around visa reforms," said Chirajeet Sengupta, practice director in Mumbai at Everest Group, on Tuesday.

Infosys released a statement denying  fraud on its part. "Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage or immigration abuse," Infosys said in a statement. "Those claims are untrue and are assertions that remain unproven."

Infosys reiterated in its statement that no criminal charges were filed against it. It further stressed that its eligibility for federal contracts are not limited.