India is looking into the business practices of Netflix's local operations, including claims of visa violations and racial discrimination, according to a government email sent to a former executive.
Details of the investigation were revealed in a July 20 email from a home ministry official to Netflix's former director of business and legal affairs for India, Nandini Mehta, who left the company in 2020. Indian official Deepak Yadav from the Foreigners Regional Registration Office (FRRO) in New Delhi wrote, "This is regarding visa and tax violations concerns regarding the business practices of Netflix in India." He added that they had received information about the company's conduct, including visa violations, illegal structures, tax evasion, and other malpractices, including incidents of racial discrimination.
Mehta, who is pursuing a lawsuit against Netflix for alleged wrongful termination and discrimination, welcomed the Indian investigation and hopes the authorities make their findings public. Yadav declined to comment, citing lack of authorization to speak to media. Netflix stated they were unaware of any government investigation.
The email indicates increasing scrutiny of Netflix in India, a market with roughly 10 million users and significant growth potential. Netflix has faced criticism in India over its content, recently adding disclaimers to an Indian series about a plane hijack due to social media outrage and government anger.
While Netflix has faced an Indian tax demand since 2023, which it is contesting, the broader investigation into allegations including visa compliance and racial discrimination has not been previously reported. The FRRO, which works closely with the home ministry's Intelligence Bureau, is the main agency looking into foreigners' visa compliance and permissions to visit sensitive regions.
Mehta, who worked at Netflix's Los Angeles and Mumbai offices from April 2018 to April 2020, was asked by the Indian government to provide details and documents as she was a former legal executive of the company. In 2021, Mehta sued Netflix in Los Angeles County Superior Court for alleged wrongful termination and discrimination, among other things. Netflix has denied all allegations and stated that Mehta was fired for misusing her corporate credit card.
