India probing Netflix for visa violations and racial discrimination, e-mail shows

NEW DELHI – India is investigating the business practices of US streaming giant Netflix’s local operations, including allegations of visa violations and racial discrimination, according to a government e-mail sent to a former executive.

The details of India’s investigation were included in a July 20 e-mail, reviewed by Reuters, which was written by a Home Ministry official to Netflix’s former director of business and legal affairs for India, Ms Nandini Mehta, who left the company in 2020.

The allegations involve “visa and tax violations concerns regarding the business practices of Netflix in India”, wrote Indian official Deepak Yadav from the ministry’s Foreigners Regional Registration Office (FRRO) in New Delhi.

“We have received certain details in this regard, with respect to the stated company’s conduct, visa violation, illegal structures, tax evasion and other malpractices including incidents of racial discrimination that (the) company has been engaged in while conducting its business in India,” he added.

In an e-mailed statement, Ms Mehta said she was pursuing a lawsuit in the US against Netflix for alleged wrongful termination as well as racial and gender discrimination – charges the company denies.

Ms Mehta said she welcomed the Indian investigation and hoped the authorities make their findings public, but did not elaborate on the allegations made by the government.

Mr Yadav declined to comment, saying he was not authorised to speak to the media. The FRRO and India’s Home Ministry did not respond to Reuters’ queries.

A Netflix spokesperson said the company was “unaware of an investigation by the Indian government”.

The Indian official’s e-mail shows growing scrutiny of Netflix in India, where it has roughly 10 million users and which it considers a growth market where companies target affluent people in the nation of 1.4 billion people.

Over the years, the US streaming giant has developed more local content featuring Bollywood actors.

It has also often faced heat in India over content deemed insensitive by some users. In September, it was forced to add new disclaimers to an Indian series about a plane hijack after social media outrage and government anger over what they said were Muslim hijackers being shown as Hindus.

No previous report of investigation

While it is known that Netflix has since 2023 faced an Indian tax demand – which it is challenging – the existence of a broader investigation into allegations including visa compliance and racial discrimination has not been previously reported.

The Indian government’s e-mail did not elaborate which agencies are looking at the issues. The FRRO works closely with the Home Ministry’s Intelligence Bureau, the domestic intelligence agency, and is the main agency looking into foreigners’ visa compliance and permissions to visit so-called “sensitive” regions.

In 2023, India accused Chinese smartphone player Vivo and its Indian affiliates of breaching visa rules by visiting certain “sensitive” regions without permission. India classifies parts of certain states, such as Jammu and Kashmir in the north and Sikkim in the east, as restricted areas.

The FRRO also acts as a liaison in matters related to foreigners with other government offices.

Ms Mehta worked at the company’s Los Angeles and Mumbai offices from April 2018 to April 2020, her LinkedIn profile shows.

The Indian government e-mail asked her to provide “details and documents” as she was a former legal executive of the company.

In 2021, Ms Mehta sued Netflix for alleged wrongful termination and racial and gender discrimination, among other things, US court filings show.

Netflix has in US court denied “each and every allegation” and said in its statement that Ms Mehta was fired for repeatedly using her corporate credit card for tens of thousands of dollars in personal expenses.

Ms Mehta said she would “continue to fight for justice”. Her case is set for a status hearing on Sept 23 in Los Angeles. REUTERS