India Probes Netflix For Visa Violation, Racial Discrimination, Email Shows

People stand next to the Netflix logo during an event in Mumbai, India, on February 29, 2024. Photo credit: Reuters

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 email sent to a former executive.

Details of India’s investigation were included in a July 20 email, reviewed by Reuters, written by a Union Home Ministry official to Netflix’s former director of business and legal affairs Nandini Mehta, who left the company in 2020.

“This concerns visa and tax violation concerns related to Netflix’s business practices in India,” wrote Indian official Deepak Yadav from the Ministry of Home Affairs’ Foreigners Regional Registration Office (FRRO) in New Delhi.

“We have received certain details (regarding) the conduct of the said company, visa violations, illegal structures, tax evasion and other misconduct including incidents of caste discrimination that the company was involved in while conducting business in India.” he added.

In an emailed statement, Ms Mehta said she was suing Netflix in the US for alleged wrongful termination as well as racial and gender discrimination – claims the company denies.

Ms Mehta said she welcomed the Indian inquiry and hoped authorities would release their findings, but did not elaborate on the allegations made by the government.

Mr Yadav declined to comment, saying he was not authorized to speak to the media. FRRO and the Union Home Ministry did not respond to Reuters’ queries.

A Netflix spokesperson said the company was “not aware of the Indian government’s investigation.”

The Indian official’s email shows growing scrutiny of Netflix in India, where it has about 10 million users and considers it a growth market where companies target the wealthy in the country of 1.4 billion people.

Over the years, the US streaming giant has produced more localized content featuring Bollywood actors.

It has often faced heat in India for what some users consider its content to be sensitive. This month, an Indian series about a plane hijack was forced to add new disclaimers after social media outrage and government outrage over the portrayal of Muslim hijackers as Hindus.

Case in US court

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

The Indian government’s email did not detail which agencies are looking into Netflix-related issues. The FRRO, the Home Ministry’s Intelligence Bureau, works closely with domestic intelligence agencies and is the main agency for seeking visa compliance and permission for foreigners to visit so-called “sensitive” areas.

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

The FRRO acts as a liaison with other government offices on matters relating to foreigners.

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

The Indian government’s email asked him to provide “details/documents” as he was a former legal executive of the company.

In 2021, Ms. Mehta sued Netflix in Los Angeles County Superior Court in California, alleging wrongful termination and racial and gender discrimination, US court filings show.

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

Ms Mehta said she would “continue to fight for justice.” His case is scheduled for a status hearing Monday in Los Angeles.