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H1B, H4 Visa

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White Slip 221g
Went for H1b visa interview with my wife at Delhi consulate today morning and was issue white slip (221 g).

Below is the stamping experience.

VO: Good Morning
Me: Good Morning

VO: Which state are you going
Me: Answered

VO: Who is your employer
Me: Answered

VO: What is your highest degree
Me: Answered

VO: Looked at my previous visa (it was of a muslim country) and asked what did you went to that country
Me: Answered

VO: Have you been to US before and on which visa
Me: Yes, I went on an L1B

THEN THINGS STATED GETTING WRONG FOR ME:

VO: Looked at my previous visa (L1B) in my passport ; then looked into his system..he did that twice....then asked 'During your return to India last time Were you stopped and questioned by the immigration officer?

Me: Me and my wife had no idea where this question came from... We both said 'No' sir

VO: Are you guys sure?
Me: Yes sir

VO: Asked us to wait and when back with our passports for doing some verification. After returning, he said I am good with your H1B but the issue is in his system it is showing that we overstayed in US for 4 & 1/2 months.

Me: I was shocked to hear that. Then i started explaining him the entire picture of my L1b visa. " My L1b visa was issued on 15th July 2010 and expiry date was 13th July 2013. Before the expiry date, my company filed the visa extension (I guess 15 -20 days prior to expiry date). In the month of Aug 2013, I got an RFE from USCIS. My company asked me to reply back to the questions. As per my understanding USCIS gives 240 days to complete the extension case. In the month of November 2013, few days before the due date to answer the RFE questions my company's legal team again reviewed the RFE questions and asked me that it is better to revoke your petition due to the nature of evidence asked which company is not able to fulfil due to legal implication and gave me a date before which I should leave the country to avoid illegal overstay. So I agreed with them and left US with my wife on 1st Dec 2013.

VO: Noted what all I explained above into the system and gave me case number.

Me: Do you want any information from my end or the L1B petitioner

VO: No, we will investigate internally...we have a separate team who does this work. We will call you if any information is required from your end.

Me: Thanks officer and left.

:-( :-( We both came out with sad faces and no clue on what to do next!

Can anyone help me and guide me whether staying in US with extension in process is considered illegal. Any guidelines on number of days an associate gets to answer the RFE?

Thanks in advance for your help!
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