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India probes Netflix over visa violations, tax evasion, racial discrimination

India probes Netflix over visa violations tax evasion racial discrimination
Netflix logo.

India is probing the business activities of U.S. streaming giant Netflix’s local operations, citing allegations of visa infractions and racial discrimination, according to a government email sent to a former company executive. The investigation details were included in a July 20 email reviewed by Reuters, which was addressed to Nandini Mehta, Netflix’s former legal and business affairs director for India, who left in 2020.

“This concerns visa and tax violations tied to Netflix’s business practices in India,” wrote Deepak Yadav from the Foreigners Regional Registration Office of the home minister.

“We have gathered information regarding the company’s conduct, including visa violations, illegal structures, tax evasion, and racial discrimination while operating in India,” he added.

In a statement via email, Nandini Mehta revealed she is suing Netflix in the U.S. for alleged wrongful termination, racial, and gender discrimination—claims the company denies.

Mehta expressed support for the Indian investigation, stating she hopes the findings will be made public, though she did not expand on the government’s allegations.

Deepak Yadav declined to comment, citing a lack of authorisation to speak with the media. Both the FRRO and India’s home ministry did not respond to inquiries from Reuters.

The Indian official’s email highlights growing scrutiny of Netflix in India, where the platform has around 10 million users and sees significant growth potential, targeting the country’s affluent population of 1.4 billion.

A Netflix spokesperson said the company was “unaware of an investigation by the Indian government.” In recent years, the streaming giant has expanded its local content, incorporating Bollywood actors.

Netflix has frequently come under fire in India for content that some viewers find insensitive.

Recently, the company was compelled to add disclaimers to an Indian series about a plane hijacking after public backlash and government criticism, which stemmed from claims that Muslim hijackers were portrayed as Hindus.

 

Investigation and Lawsuit

Although it is known that Netflix has been contesting an Indian tax demand since 2023, the broader investigation into allegations such as visa compliance and racial discrimination has not been previously disclosed.

The Indian government’s email did not specify which agencies were involved in the investigation.

The FRRO, which collaborates with the Home Ministry’s Intelligence Bureau, is the primary body overseeing visa compliance and permissions to visit “sensitive” areas.

Last year, India accused Chinese smartphone company Vivo and its affiliates of violating visa regulations by entering restricted regions without authorization. India designates parts of states like Jammu & Kashmir and Sikkim as restricted areas.

Mehta’s LinkedIn profile shows she worked at Netflix’s Los Angeles and Mumbai offices between April 2018 and April 2020. The FRRO, which also liaises with other government agencies on foreign-related matters, asked her to submit “details/documents” as a former legal executive.

In 2021, Mehta sued Netflix in Los Angeles County Superior Court, alleging wrongful termination along with racial and gender discrimination.

Netflix denied “each and every allegation” in court, stating she was dismissed for misusing her corporate credit card for personal expenses worth tens of thousands of dollars.

Mehta has pledged to “continue to fight for justice,” with a status hearing set for Monday in Los Angeles.

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