Netflix reportedly under scrutiny in India over visa violations and allegations of racial discrimination

India is investigating the business practices of the local operations of US streaming giant Netflix over allegations of visa irregularities and racial discrimination, according to an email from the Indian government to a former executive.

Details of the Indian investigation are contained in a July 20 email seen by Reuters from a home ministry official to Nandini Mehta, Netflix’s former director of commercial and legal affairs in India, who left the company in 2020.

“This is in response to concerns about visa and tax irregularities in Netflix’s business practices in India,” wrote Deepak Yadav, an official at the Foreigners Regional Registration Office (FRRO) of the Ministry of Home Affairs in New Delhi.

He added: “We have received certain details about the company’s conduct, visa irregularities, illegal structures, tax evasion and other misconduct, including incidents of racial discrimination in relation to the company’s operations in India.”

Mehta said in an emailed statement that she is filing a lawsuit against Netflix in the United States, alleging wrongful termination and racial and gender discrimination – charges the company has denied.

Mehta said she welcomed India’s investigation and hoped authorities would make its findings public, but did not elaborate on the government’s allegations.

Yadav declined to comment, saying he was not authorized 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 ongoing investigation by the Indian government.”

Emails from Indian officials show the growing scrutiny Netflix has come under in India, where it has about 10 million subscribers and which India considers a growth market as it targets wealthy people in the country of 1.4 billion people.

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

The company also frequently faces criticism in India for content that some users consider insensitive. This month, it was forced to add a new disclaimer to an Indian series about plane hijackings after outrage on social media and in the government over the portrayal of the alleged Muslim hijackers as Hindus.

Document Requests, U.S. Litigation

It’s well known that Netflix has been facing Indian tax demands since 2023 — a challenge for it — but the wider investigation into allegations including visa compliance and racial discrimination has not been previously reported.

The Indian government email did not detail which agencies were investigating the Netflix issue. The FRRO, which works closely with the Ministry of Internal Affairs’ Intelligence Bureau (the domestic intelligence agency), is the lead agency to investigate foreigners’ visa compliance and permission to visit so-called “sensitive” areas.

Last year, India accused Chinese smartphone maker Vivo and its Indian unit of violating visa rules by travelling to certain “sensitive” areas without permission. India has designated parts of Jammu and Kashmir in the north and Sikkim in the east as off-limits areas.

The FRRO also acts as a liaison with other government agencies on matters related to foreigners.

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

The Indian government emails asked her to provide “details/documents” as she had been the legal head of the company.

U.S. court documents show that in 2021, Mehta filed a lawsuit against Netflix in the Los Angeles County Superior Court in California, accusing it of wrongful termination and racial and gender discrimination.

Netflix denied “each and every allegation” in a US court and said in a statement that Mehta was fired for repeatedly using company credit cards to pay tens of thousands of dollars in personal expenses.

Mehta said she would “continue to fight for justice.” Her case is due to go to court in Los Angeles on Monday.

Disclaimer: This report has been published from wire agency reports without modification. Only the headline has been changed.