Netflix India Faces Scrutiny For Alleged Visa Violations, Racial Discrimination, And Tax Evasion

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New Delhi: Netflix India is facing an investigation over alleged visa violations, racial discrimination, tax evasion and questionable business practices, according to a government email reviewed by Reuters. This marks the latest challenge for the streaming giant in India.

Details of the Investigation

The investigation was revealed 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:

"This is regarding visa and tax violations concerns regarding the business practices of Netflix in India. We have received certain details in this regard w.r.t (with respect to) the stated company's conduct, visa violation, illegal structures, tax evasion and other malpractices including incidents of racial discrimination that company has been engaged in while conducting its business in India."

Netflix's Response

A Netflix spokesperson informed Reuters that the company was "unaware of any investigation being conducted by the Indian government."

Nandini Mehta's Lawsuit

Nandini Mehta, departed from Netflix in 2020 and she is currently suing the company in the US for alleged wrongful termination and racial and gender discrimination—claims that Netflix denies. Mehta has voiced her support for the Indian government's investigation and hopes that the findings will be made public. She declined to share additional details regarding the specific allegations.

Growing Scrutiny in India

Netflix has been under growing scrutiny in India. They found around 10 million subscribers. While the company has made significant investments in producing local content, including projects with Bollywood stars, it has also faced criticism over content considered offensive by some viewers and officials. Alongside the ongoing investigation, Netflix has been contesting a tax demand from the Indian government since 2023.

Scope of the Investigation

The email from the FRRO did not detail which agencies are participating in the investigation. The FRRO, which collaborates closely with India’s Intelligence Bureau, mainly oversees visa compliance for foreigners and permissions for visiting restricted areas. However, it also works alongside other government agencies on issues concerning foreigners.

Nandini Mehta's Involvement

Mehta was employed at Netflix's offices in Los Angeles and Mumbai from 2018 to 2020. The Indian government's email asked her to provide "details/documents" pertinent to the investigation, given her previous position as a legal executive at the company.