India has started an investigation into the business practices of Netflix’s Indian operations. The investigation focuses on serious allegations, including possible visa violations and racial discrimination within the company.
These details came to light through an email sent by a government official from the home ministry to Nandini Mehta, who was former Director of Business and Legal Affairs for India but left the company in 2020. The email, dated July 20, was reviewed by Reuters.
This email outlines the government’s concerns and questions about Netflix’s operations in India, highlighting the reasons behind the ongoing investigation.
The probe reflects India’s growing scrutiny of major international companies to ensure compliance with local laws and to address any potential misconduct.
India Probes Netflix
India is currently investigating Netflix’s business operations in the country, including claims of visa violations, tax evasion, and racial discrimination, as per a government communication to a former company executive.
The investigation’s specifics were outlined in a July 20 email from a home ministry official, which Reuters reviewed. The email was addressed to Nandini Mehta, former Director of Business and Legal Affairs for India, who left the company in 2020.
Deepak Yadav, an official from the Foreigners Regional Registration Office (FRRO) of the home ministry in New Delhi, stated, “This pertains to concerns about visa and tax violations involving Netflix’s business practices in India.”
“We have gathered information regarding the company’s conduct, including visa breaches, illegal structures, tax evasion, and incidents of racial discrimination linked to Netflix’s business activities in India,” he further noted.
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Mehta Files U.S. Lawsuit Against Netflix Alleging Discrimination
In an emailed statement, Mehta revealed she has filed a lawsuit in the U.S. against Netflix, alleging wrongful termination, racial discrimination, and gender bias, claims which Netflix denies.
Mehta expressed support for the Indian investigation and hopes the findings will be made public, but did not provide further details on the government’s accusations.
Yadav declined to comment, stating he was not authorized to speak to the media. The FRRO and India’s home ministry did not respond to requests for comment from Reuters.
Netflix Faces Scrutiny in India
A Netflix spokesperson stated that the company was “unaware of any investigation by the Indian government.”
An email from an Indian official highlights increased scrutiny of Netflix in India, where the streaming platform has around 10 million users. India is seen as a significant growth market, especially among the country’s affluent population of 1.4 billion.
Over the years, Netflix has expanded its local content library, often featuring popular Bollywood actors. However, it has also faced criticism in India for content that some viewers find insensitive. Recently, this had to add disclaimers to an Indian series about a plane hijacking following public and government backlash over the portrayal of Muslim hijackers as Hindus.
Netflix, already contesting a 2023 tax demand from Indian authorities, is now under broader scrutiny for allegations including visa compliance and racial discrimination, previously unreported. The Indian government’s email did not specify which agencies are involved in the probe.
The Foreigner Regional Registration Office (FRRO), which works closely with the Home Ministry’s Intelligence Bureau, is the primary agency overseeing foreigners’ visa compliance and travel permissions to restricted areas in India.
In 2022, India accused Chinese smartphone maker Vivo and its affiliates of violating visa regulations by visiting sensitive regions without authorization. India designates certain areas in states like Jammu & Kashmir and Sikkim as restricted.
The FRRO also coordinates with other government bodies on issues involving foreign nationals. Former Netflix legal executive Mehta, who worked in Los Angeles and Mumbai from 2018 to 2020, was contacted by the Indian government to provide documentation due to her previous role with the company.
In 2021, Mehta filed a lawsuit against it in Los Angeles County Superior Court, alleging wrongful termination, racial discrimination, and gender bias. Netflix has denied these claims, asserting that Mehta was terminated for using her corporate credit card for personal expenses amounting to tens of thousands of dollars.
Mehta, however, vows to continue her fight for justice, with her case scheduled for a status hearing on Monday in Los Angeles.
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India Probes Netflix FAQs
Q.1. What allegations is India investigating against Netflix?
Ans. India is investigating claims of visa violations, tax evasion, and racial discrimination within Indian operations.
Q.2. Who raised concerns about Netflix’s practices?
Ans. The concerns were highlighted in a government email to Nandini Mehta, former Director of Business and Legal Affairs in India.
Q.3. What is Nandini Mehta’s involvement with Netflix?
Ans. Nandini Mehta has filed a lawsuit in the U.S. against the company, alleging wrongful termination and discrimination.
Q.4. What is the role of the Foreigners Regional Registration Office (FRRO) in this investigation?
Ans. The FRRO is overseeing the investigation related to visa compliance and works closely with the Home Ministry’s Intelligence Bureau.
Q.5. How has Netflix responded to the investigation?
Ans. A spokesperson stated that the company was unaware of any investigation by the Indian government.
