India, Sept. 9 -- Months after specifically mentioning the company under an investigation for alleged fraud, the United States Department of Labour suspended India-founded and US-listed tech giant Cognizant's ability to file for new green card sponsorship.

The department's Inspector General Anthony D'Esposito announced that the company's PERM (Program Electronic Review Management) filings had been suspended. This refers to the labour certification process that US employers must complete before sponsoring a foreign worker for an employment based green card. D'Esposito said technology firm Cloudera also faced a suspension of its PERM filings.

The move is set to impact Indians nationals too, with the company, founded in Chennai in 1994 and...