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Netflix, the streaming giant, is facing a multifaceted investigation in India, encompassing allegations of visa violations, tax evasion, and racial discrimination, according to a government email reviewed by Reuters. The investigation, which has not been previously reported, adds to the mounting scrutiny of Netflix's operations in India, a key growth market for the company.
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 detailed concerns regarding visa and tax violations, stating that the FRRO had received information about Netflix's conduct, including alleged visa violations, illegal structures, tax evasion, and instances of racial discrimination.
Netflix, however, has denied knowledge of an investigation, with a spokesperson stating that the company was unaware of any such probe. The company has also refuted allegations of wrongful termination, racial and gender discrimination made by Mehta in a lawsuit filed against Netflix in the US. Mehta, who left Netflix in 2020, welcomed the Indian government's investigation, expressing hope that the findings would be made public. She declined to provide specific details about the allegations.
Netflix's growing presence in India, where it boasts an estimated 10 million subscribers, has been accompanied by increasing scrutiny. The company has invested significantly in local content production, featuring Bollywood stars, but has also encountered controversies over content perceived as insensitive by some viewers and government officials. In addition to the current investigation, Netflix has been challenging a tax demand from the Indian government since 2023.
The FRRO email did not specify the agencies involved in the investigation. While the FRRO, working closely with India's Intelligence Bureau, primarily focuses on monitoring visa compliance and permissions for foreigners, it also collaborates with other government agencies on issues related to foreigners. Mehta's role as a legal executive at Netflix from 2018 to 2020, spanning both Los Angeles and Mumbai offices, has prompted the Indian government to request her to provide relevant details and documents for the investigation.
Source: Netflix India faces scrutiny over alleged visa violations, racial discrimination, tax evasion