Netflix India faces scrutiny over alleged visa violations, racial discrimination, tax evasion

Netflix India is under investigation for alleged visa violations, racial discrimination, tax evasion, and other business practice irregularities, according to a government email reviewed by Reuters. The investigation, which has not been previously reported, adds to the growing scrutiny of the streaming giant's operations in India, a crucial growth market for the company.

Allegations and Government Email

The investigation came to light through a July 20 email from Deepak Yadav, an official with the Foreigners Regional Registration Office (FRRO) of India's Home Ministry, to Nandini Mehta, Netflix's former director of business and legal affairs for India. The email stated:

"This is regarding visa and tax violations concerns regarding the business practices of Netflix in India. We have received certain details in this regard w.r.t (with respect to) the stated company's conduct, visa violation, illegal structures, tax evasion and other malpractices including incidents of racial discrimination that company has been engaged in while conducting its business in India."

Netflix's Response

A Netflix spokesperson told Reuters that the company was "unaware of an investigation by the Indian government."

Mehta's Lawsuit and Support for the Investigation:

Nandini Mehta, who left Netflix in 2020, is pursuing a lawsuit in the US against the company for alleged wrongful termination, racial and gender discrimination – charges that Netflix denies.

Mehta welcomed the Indian government's investigation and expressed her hope that the findings would be made public. She declined to provide further details about the specific allegations.

Growing Scrutiny in India

Netflix has faced increasing scrutiny in India, where it has a substantial user base of approximately 10 million subscribers. The company has invested heavily in local content production, featuring Bollywood stars, but has also encountered controversies over content deemed insensitive by some viewers and government officials.

In addition to the current investigation, Netflix has been challenging a tax demand from the Indian government since 2023.

Scope of the Investigation

The email from the FRRO did not specify which agencies are involved in the investigation. The FRRO, which works closely with India's Intelligence Bureau, is primarily responsible for monitoring foreigners' visa compliance and permissions to visit restricted areas. However, the FRRO also collaborates with other government agencies on matters related to foreigners.

Mehta's Role and Allegations

Mehta worked at Netflix's Los Angeles and Mumbai offices from 2018 to 2020. The Indian government's email requested her to provide "details/documents" related to the investigation due to her former role as a legal executive at the company.