New Delhi — India is investigating the business practices of U.S. streaming giant Netflix reported Reuters. Investigations include allegations of visa violations, tax evasion, and racial discrimination, according to an internal government email reviewed by Reuters.
The email, dated July 20, was sent by Indian official Deepak Yadav from the Foreigners Regional Registration Office (FRRO) to Nandini Mehta, Netflix’s former director of business and legal affairs in India. It outlined the scope of the investigation into Netflix’s local operations, including potential misconduct regarding visas, tax compliance, and claims of discriminatory practices.
“We have received certain details regarding the company’s conduct, including visa violations, illegal structures, tax evasion, and other malpractices, including incidents of racial discrimination while conducting business in India,” Yadav wrote in the email.
Mehta, who left Netflix in 2020, confirmed that she is pursuing a lawsuit in the U.S. against the company, alleging wrongful termination, as well as racial and gender discrimination. Netflix has denied these claims, stating that Mehta was fired for using her corporate credit card for personal expenses.
The investigation appears to stem from various complaints about Netflix's business practices in India, including the misuse of visas and potential tax violations. The FRRO, which works closely with India's Intelligence Bureau, is responsible for overseeing visa compliance and regulating the movement of foreigners in sensitive areas of the country. However, no specific details about the violations or the scope of the inquiry have been publicly revealed.
Netflix, in response to Reuters, said it was "unaware of an investigation by the Indian government."
India has been increasingly scrutinizing foreign companies operating within its borders, particularly over issues such as visa compliance. Last year, the Indian government accused Chinese smartphone maker Vivo of breaching visa rules by visiting restricted regions without the necessary permissions.
Mehta, who worked at Netflix's Los Angeles and Mumbai offices from April 2018 to April 2020, filed a lawsuit against the company in Los Angeles County Superior Court. She alleges wrongful termination, as well as racial and gender discrimination during her time at the company. Mehta claims her dismissal was unjust and linked to her standing up against discriminatory practices within the firm.
Netflix has denied the accusations, asserting that Mehta was fired due to repeated misuse of her corporate credit card for personal expenses totaling tens of thousands of dollars.
The case is set for a status hearing in Los Angeles on Monday, and Mehta has expressed her intent to continue fighting for justice. She also welcomed the Indian investigation, hoping its findings would be made public.
Netflix, which has around 10 million users in India, considers the country a key growth market. Over the years, it has produced a range of locally relevant content featuring prominent Bollywood actors and has tailored its offerings to appeal to affluent users in the country of 1.4 billion people.