Netflix under government's scanner for alleged visa violations, racial discrimination
The Indian government is currently investigating allegations of visa violations and racial discrimination against Netflix's local operations. The details of this investigation were revealed in an email (viewed by Reuters) from a home ministry official to Nandini Mehta, Netflix's former director of business and legal affairs for India. "This is regarding visa and tax violations concerns regarding the business practices of Netflix in India," wrote Deepak Yadav from the Foreigners Regional Registration Office (FRRO) of the Home Ministry.
Allegations against Netflix's business practices in India
Yadav's email to Mehta outlined several allegations against Netflix, including visa violation, illegal structures, tax evasion, and other malpractices. The official also mentioned incidents of racial discrimination that the company has allegedly engaged in while conducting its business in India. In response to these allegations, a Netflix spokesperson stated that the company was "unaware of an investigation by the Indian government."
Former executive welcomes Indian investigation
Mehta, who is currently suing Netflix in the US for alleged wrongful termination as well as racial and gender discrimination, has welcomed the Indian investigation. She expressed hope that the authorities would make their findings public. However, she did not provide further details on the allegations made by the government. This lawsuit adds another layer to Netflix's legal challenges as it navigates its business operations in India.
Netflix's growing user base and content controversies in India
Netflix has approximately 10 million users in India, a market it considers crucial for growth. The company has been producing more local content featuring Bollywood actors to cater to this expanding user base. However, it has also faced backlash over content deemed insensitive by some users. Recently, Netflix was compelled to add new disclaimers to an Indian series about a plane hijack following social media uproar and government criticism.
Unreported aspects of the investigation
The Indian government's email did not specify which agencies are investigating issues related to Netflix. The FRRO, which is primarily responsible for overseeing foreigners' visa compliance and permissions to visit "sensitive" regions, works closely with the Home Ministry's Intelligence Bureau. This broader investigation into allegations including visa compliance and racial discrimination has not been previously reported.
Mehta's tenure at Netflix and ongoing legal battle
Mehta served at Netflix's Los Angeles and Mumbai offices from April 2018 to April 2020. The Indian government email requested her to provide "details/documents" as she was a former legal executive of the company. In 2021, she sued Netflix in Los Angeles County Superior Court for alleged wrongful termination and racial and gender discrimination. Netflix has denied "each and every allegation" in US court, stating Mehta was dismissed for repeatedly using her corporate credit card for personal expenses.
