Netflix India is currently under investigation for alleged visa violations, racial discrimination, tax evasion, and other irregularities in its business practices, according to a government email reviewed by Reuters. This previously unreported investigation adds to the increasing scrutiny of Netflix’s operations in India, a key growth market for the streaming giant.
Allegations and Government Communication
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, addressed to Nandini Mehta, Netflix’s former Director of Business and Legal Affairs for India. The email stated:
“This is regarding visa and tax violation concerns regarding the business practices of Netflix in India. We have received certain details in this regard with respect to the company’s conduct, visa violations, illegal structures, tax evasion, and other malpractices, including incidents of racial discrimination, that the company has engaged in while conducting its business in India.”
Netflix’s Response
In response to Reuters, a Netflix spokesperson said the company was “unaware of an investigation by the Indian government.”
Nandini Mehta’s Lawsuit and Support for Investigation
Nandini Mehta, who left Netflix in 2020, is currently pursuing a lawsuit in the U.S. against the company, alleging wrongful termination, racial and gender discrimination, which Netflix has denied. Mehta welcomed the Indian government’s investigation and expressed hope that its findings would be made public. She did not provide further details on the specific allegations against the company.
Increasing Scrutiny in India
Netflix has been under growing scrutiny in India, where it boasts a significant user base of around 10 million subscribers. While Netflix has invested heavily in local content production, featuring Bollywood stars, it has also faced controversies over some content considered insensitive by viewers and government officials. Alongside this investigation, Netflix has been contesting 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 mainly responsible for monitoring visa compliance and foreign visitors to restricted areas. However, it also collaborates with other government agencies on matters concerning foreigners.
Mehta’s Role and Allegations
Mehta worked at Netflix’s Los Angeles and Mumbai offices between 2018 and 2020. The Indian government’s email requested her to provide “details/documents” relevant to the investigation due to her prior role as a legal executive at the company.
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