Netflix India is under scrutiny for alleged visa violations, racial discrimination and tax evasion

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

Government allegations and emails

The investigation came to light through a July 20 email that Deepak Yadav, an official at the Foreigners Regional Registration Office (FRRO) of India’s Ministry of Home Affairs, wrote to Nandini Mehta, Netflix’s former director of business and legal affairs in India. The email said:

“This concerns concerns regarding visa and tax violations related to Netflix’s business practices in India. We have received certain details in this regard regarding the said company’s conduct, visa violations, illegal structures, tax evasion and other misconduct, including incidents of racial discrimination, in which the company was involved during its operations in India.”

Netflix’s response

A Netflix spokesperson told Reuters the company was “not aware of any Indian government investigation.”

Mehta’s complaint and support for the investigation:

Nandini Mehta, who left Netflix in 2020, is suing the company in the US for alleged wrongful termination and racial and gender discrimination – allegations that Netflix denies.

Mehta welcomed the Indian government’s investigation and expressed her hope that the results would be published. She declined to provide further details on the specific allegations.

Growing criticism in India

Netflix has come under increasing scrutiny in India, where it has a sizeable user base of around 10 million subscribers. The company has invested heavily in producing local content, including Bollywood stars, but has also faced controversy because some viewers and government officials found the content insensitive.

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

Scope of the investigation

The FRRO’s email did not specify which agencies are involved in the investigation. The FRRO, which works closely with India’s intelligence agency, is primarily responsible for monitoring visa compliance by foreigners and permits to visit restricted areas. However, the FRRO also works with other government agencies on foreigner issues.

Mehta’s role and allegations

Mehta worked at Netflix’s Los Angeles and Mumbai offices from 2018 to 2020. The Indian government’s email asked her to provide “details/documents” related to the investigation because she previously worked as the company’s legal officer.