https://www.google.co.il/amp/s/www.washingtonpost.com/amphtml/local/public-safety/va-man-behind-20-million-visa-fraud-faces-deportation-after-prison-sentence/2017/12/22/61007138-e729-11e7-833f-155031558ff4_story.html

Edit: and yes, India, only allows single-citizenship. Accepting U.S. citizenship automatically results in the loss of Indian citizenship.

Not sure about India, but in other countries this "automatic revocation" is neither automatic nor permanent (believe it or not)

Also, given it is not a requirement by the US that the recipient give up their other citizenships, they don't care about the other country knowing about it

I guess that one could ignore this and keep on using their Indian passport - but doing so would be fraud and criminal misrepresentation.

    WARNING
    If holder acquires Nationality 
    of another country, he should 
    Surrender This Passport 
    forthwith to the nearest Indian 
    Mission/Post Abroad. Un-
    authorized possession of this 
    Document shall Constitute an 
    Offence Punishable under 
    the Indian Passport Act 1967

Not had this experience to comment on this first hand.

But as an Indian, I guess they ask you to surrender your Passport at the Indian embassy, and then ask you to apply for a PIO(Person of Indian origin) card.

There are heavy fines for not self surrendering the indian passport after US Citizenship within 6 months.

On the other hand, I think, putting your US citizenship on risk for maintaining a illegal status would not make sense for a lot of people.

That means the law is not the same for all American citizens. He is getting a different punishment than another arbitrary American citizen doing the same offense.

Usually the way this works is that country A doesn't "recognise" dual-citizenship, which means if you are a citizen of country A and country B and you commit an offence in country A you don't get to say "well I am a citizen of country B so that doesn't apply to me". I am not sure if India requires you to give up your citizenship on taking another, but if they did it would make sense, and in fact it's surprising that that doesn't always happen. If a citizen of country A wants to become a citizen of country B instead fair enough but it's not in the interests of A or B that they should retain citizenship of A too.

Perhaps the simplest solution is to disallow Indian nationals from applying for H1B completely?

I think its generally problematic if one class of visa comes to be dominated by a single nationality. It does not result in diversity in the host country, for starters.

I think people would be more welcoming of the H1B visa (and expanding it, or offering more rights for those on it) if it wasn't completely dominated by Indian men. Perhaps rules limiting any one country to a maximum of 10% of the visa quota, and ensuring the intake is at least 60% female would assist public perceptions?

There is a similar rule to what you propose in the Olympic Games. Max of 3 athletes from a given country in each track and field event. I always found that rule stupid and artificial. Potentially several of the top 10 athletes in the World can't compete just because of their country of origin.

Wow, this is an incredibly racist and west-centric view.

Are you really going to exclude 17% of the world's population based exclusively on where they were born?