Netflix India is being investigated for possible visa breaches, racial discrimination, tax fraud, and other business practice issues, according to a government email obtained by Reuters. The probe, which has not previously been published, adds to the mounting scrutiny of the streaming giant’s operations in India, the company’s most important growth region.
Allegations and Government Emails
Deepak Yadav, an officer with India’s Home Ministry’s Foreigners Regional Registration Office (FRRO), sent an email to Nandini Mehta, Netflix’s former director of business and legal affairs for India, on July 20 that revealed the probe. The email said:
This is in response to concerns about visa and tax issues related to Netflix’s business activities in India. We have obtained specific information on the indicated firm’s behavior, visa violations, unlawful structures, tax evasion, and other malpractices, including cases of racial discrimination, that the company has participated in while conducting business in India.”
Netflix’s Response
A spokeswoman for Netflix told Reuters that the firm was “unaware of an investigation by the Indian government.”
Mehta’s Lawsuit and Support for Investigation:
Nandini Mehta, who left Netflix in 2020, is suing the corporation in the United States for claimed wrongful termination, and racial and gender discrimination, which it disputes.
Increasing Scrutiny in India
Netflix has received increased scrutiny in India, where it has a sizable user base of over 10 million members. The corporation has made significant investments in local content development, including Bollywood stars, but has also faced criticism for content deemed offensive by certain viewers and government authorities.
In addition to the ongoing inquiry, Netflix has been contesting a tax demand from the Indian government since 2023.
Scope of the Investigation
The FRRO’s communication did not identify which agencies were conducting the probe. The FRRO, which works closely with India’s Intelligence Bureau, is largely in charge of overseeing foreigners’ visa compliance and licenses to access restricted regions. However, the FRRO also works with other government organizations on concerns concerning foreigners.
Mehta’s Role and Allegations
Mehta worked at Netflix’s Los Angeles and Mumbai headquarters from 2018 to 2020. Due to her previous position as a legal officer at the firm, the Indian government’s email asked her to supply “details/documents” on the probe.s” on the probe.