Is it true that candidates from WITCH don't get invited to interviews?

I recently talked to a relative who is an engineering manager at a prestigious tech company. I asked about his experience hiring engineers and he told me that his company immediately disqualifies any candidate who has WITCH or any service based company on their resume regardless of other factors. Apparently it's an unofficial guideline at the org and he basically implied that they don't even count WITCH experience as experience.

This sounds absolutely brutal and kinda hard to believe. Is this sort of practice common at good companies in India these days? Or is this an unusual case