India investigates Netflix for visa violations, racial discrimination: report

New Delhi:

India is investigating the business practices of local streaming giant Netflix, including allegations of visa violations and racial discrimination, according to a government email sent to a former executive. Details of the Indian investigation were contained in a July 20 email reviewed by Reuters that was written by a home ministry official to Netflix India’s former chief business and legal officer, Nandini Mehta, who left the company in 2020.

“This relates to visa and tax violations in the context of Netflix’s business practices in India,” wrote Deepak Yadav, an Indian official at the Foreigners’ Regional Registration Office (FRRO) of the home ministry in New Delhi.

“We have obtained certain details in this regard regarding the conduct of the named company, visa violations, illegal structures, tax evasion and other unfair practices, including racial discrimination, committed by the company while operating in India,” he added.

In an emailed statement, Ms Mehta said she intends to pursue a lawsuit against Netflix in the US over alleged wrongful termination and racial and gender discrimination – allegations the company denies.

Ms Mehta said she welcomed India’s investigation and hoped authorities would make their findings public, but she 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. The FRRO and India’s home ministry did not respond to questions from Reuters.

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

The email, sent by an Indian official, shows that Netflix is ​​facing increasing scrutiny in India, where it has about 10 million users and is seen as a growth market where companies are targeting wealthy people in the country of 1.4 billion people.

Over the years, the American streaming giant has been creating more local content featuring Bollywood actors.

He has also frequently faced criticism in India for content that some users found insensitive. This month, he was forced to add new disclaimers to an Indian TV series about a plane hijacking after social media outrage and government anger over the Muslim hijackers being portrayed as Hindus.

SEARCH FOR DOCUMENTS, US LAWSUIT

Netflix is ​​known to be facing an Indian tax demand from 2023, which is a challenge, but there has been no report of a broader investigation into allegations including visa failures and racial discrimination.

The Indian government email did not provide details about which agencies are investigating the Netflix case. The FRRO works closely with the Home Ministry’s Intelligence Bureau, the country’s intelligence agency, and is the lead agency that examines visa compliance and travel permits for foreigners in so-called “sensitive” regions.

Last year, India accused Chinese smartphone maker Vivo and its Indian subsidiaries of violating visa rules by visiting some “sensitive” regions without permission.

The FRRO also serves as a liaison with other government offices in matters concerning foreigners.

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

The Indian authorities sent her an email asking her to provide “details/documents” as she was a former employee of the company’s legal department.

US court documents show that in 2021, Ms Mehta sued Netflix in the Superior Court of Los Angeles County, California, for alleged wrongful termination and racial and gender discrimination, among other things.

Netflix denied “every accusation” in a US court and said in a statement that Ms Mehta was fired for repeatedly using her company credit card for personal expenses amounting to tens of thousands of dollars.

Ms. Mehta said she would “continue to fight for justice.” Her case is scheduled to be heard Monday in Los Angeles.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)