India probing Netflix for visa violations, racial discrimination, email shows.
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India is examining the business operations of the U.S. streaming company Netflix (NFLX.O), focusing on claims of visa infractions and racial discrimination, as indicated in a government email addressed to a former executive. The specifics of the investigation were outlined in a July 20 email, which was reviewed by Reuters. This correspondence was sent by an official from the home ministry to Nandini Mehta, Netflix’s former director of business and legal affairs for India, who departed from the company in 2020.
This correspondence addresses concerns related to visa and tax violations associated with Netflix’s business operations in India, as stated by Deepak Yadav, an official from the Foreigners Regional Registration Office (FRRO) within the home ministry in New Delhi. “We have obtained specific information pertaining to the company’s actions, including visa infractions, unlawful constructions, tax evasion, and various other unethical practices, such as instances of racial discrimination that the company has reportedly engaged in while operating in India,” he further noted.
In a statement sent via email, Mehta indicated that she is initiating legal action in the United States against Netflix, citing claims of wrongful termination along with allegations of racial and gender discrimination, which the company has refuted. Mehta expressed her support for the investigation being conducted by Indian authorities and expressed hope that the findings will be made public; however, she did not provide further details regarding the allegations put forth by the government. Yadav refrained from commenting, stating that he lacked the authority to address the media. The FRRO and the Ministry of Home Affairs in India did not respond to inquiries from Reuters. A representative from Netflix stated that the company was “unaware of any investigation by the Indian government.”
The email from the Indian official indicates an increasing examination of Netflix’s operations in India, where the platform boasts approximately 10 million subscribers and views the country as a promising market, particularly targeting the affluent demographic within a population of 1.4 billion. Over time, the American streaming powerhouse has produced a greater volume of local content featuring prominent Bollywood stars. However, it has frequently encountered criticism in India regarding content that some users find offensive.
Recently, the company was compelled to incorporate new disclaimers into an Indian series centered on a plane hijacking, following social media backlash and governmental discontent over the portrayal of Muslim hijackers as Hindus.
SEEKING DOCUMENTS, U.S. LAWSUIT..
Netflix has been contending with an Indian tax demand since 2023, a matter it is currently disputing. However, it has not been previously disclosed that there is a wider investigation into allegations related to visa compliance and racial discrimination.
The email from the Indian government did not specify which agencies are investigating Netflix’s issues. The Foreigners Regional Registration Office (FRRO) collaborates closely with the Intelligence Bureau of the home ministry, which is the primary agency responsible for overseeing visa compliance and permissions for foreigners visiting designated “sensitive” areas. In the previous year, India accused the Chinese smartphone manufacturer Vivo and its Indian subsidiaries of violating visa regulations by traveling to certain “sensitive” regions without the necessary permissions. The Indian government designates specific areas, such as Jammu & Kashmir in the north and Sikkim in the east, as restricted zones.
The FRRO also acts as a liaison in matters related to foreigners with other government offices.
Mehta worked at the company’s Los Angeles and Mumbai offices from April 2018 to April 2020, her LinkedIn profile shows.
The Indian government email asked her to provide “details/documents” as she was a former legal executive of the company.
In 2021, Mehta sued Netflix in Los Angeles County Superior Court in California for alleged wrongful termination and racial and gender discrimination, among other things, U.S. court filings show.
Netflix has in U.S. court denied “each and every allegation” and said in its statement that Mehta was fired for repeatedly using her corporate credit card for tens of thousands of dollars in personal expenses.
Mehta said she will “continue to fight for justice.” Her case is set for a status hearing on Monday in Los Angeles.
