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Netflix India is currently facing a government investigation stemming from allegations of visa violations, racial discrimination, tax evasion, and questionable business practices. The investigation was brought 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. In the email, Yadav stated that the FRRO had received information regarding Netflix's conduct in India, including allegations of visa violations, illegal structures, tax evasion, and racial discrimination. These accusations, if proven, could have significant repercussions for Netflix in the Indian market.
Netflix has denied any knowledge of the investigation, stating that they are unaware of any such inquiry by the Indian government. However, Nandini Mehta, who departed from Netflix in 2020 and is currently suing the company in the US for alleged wrongful termination and racial and gender discrimination, supports the Indian government's investigation. Mehta declined to provide specific details regarding the allegations but expressed hope that the findings would be made public. Mehta's lawsuit against Netflix, which Netflix denies, could be seen as further evidence of the company's potential misconduct in India.
The investigation into Netflix in India is part of a larger trend of growing scrutiny towards the streaming giant in the country. Despite making significant investments in producing local content, Netflix has faced criticism for content deemed offensive by some viewers and officials. Additionally, Netflix has been contesting a tax demand from the Indian government since 2023. This investigation, alongside the tax dispute and criticism over content, paints a picture of a company struggling to navigate the complex legal and cultural landscape of India. The outcome of the investigation remains uncertain, but it will undoubtedly have a significant impact on Netflix's future in the Indian market.
The FRRO's email did not specify which agencies are involved in the investigation. The FRRO, working closely with India's Intelligence Bureau, primarily oversees visa compliance for foreigners and permissions for visiting restricted areas. However, it also collaborates with other government agencies on issues concerning foreigners. Mehta, who worked at Netflix's offices in Los Angeles and Mumbai from 2018 to 2020, was requested by the Indian government to provide documents related to the investigation. This request underscores the seriousness of the allegations and the government's commitment to investigating them thoroughly.
Source: Netflix India Faces Scrutiny For Alleged Visa Violations, Racial Discrimination, And Tax Evasion