India has launched an investigation into the business practices of U.S. streaming giant Netflix, focusing on allegations of visa violations, tax evasion, and racial discrimination.
This inquiry, revealed in a government email from July 20, was addressed to Nandini Mehta, Netflix’s former director of business and legal affairs for India, who left the company in 2020.
The email, written by Deepak Yadav, a home ministry official from the Foreigners Regional Registration Office (FRRO) in New Delhi, highlights concerns about Netflix’s operations in India.
The email outlined allegations, including visa and tax violations, illegal business structures, and racial discrimination, as part of Netflix’s business activities in the country. However, the specifics of these claims were not fully detailed in the email. In response, Ms. Mehta expressed her support for the investigation, hoping that the findings would be made public, although she did not elaborate further on the accusations.
Ms. Mehta is also pursuing a lawsuit against Netflix in the U.S., citing wrongful termination, racial, and gender discrimination—claims that Netflix has denied. In U.S. court filings, the company stated that she was terminated for allegedly misusing her corporate credit card for personal expenses.
A Netflix spokesperson commented that the company was unaware of any investigation by the Indian government. The FRRO and India’s home ministry did not respond to requests for comment from Reuters.
This investigation comes amid increased scrutiny of Netflix in India, where the streaming service has around 10 million users. Netflix has invested heavily in local content and Bollywood productions to tap into India’s growing affluent middle class. Despite its popularity, the platform has often faced criticism for content deemed culturally insensitive. For instance, earlier this month, Netflix had to add disclaimers to an Indian series about a plane hijacking after backlash over the portrayal of Muslim hijackers as Hindus.
While Netflix has been challenging a tax demand in India since 2023, the broader investigation into visa compliance and racial discrimination had not previously been reported. The government email does not clarify which agencies are involved in the investigation, but the FRRO, which oversees visa compliance, works closely with India’s Intelligence Bureau on matters related to foreigners.
This isn’t the first time India has scrutinized multinational corporations over visa issues. Last year, the government accused Chinese smartphone maker Vivo of violating visa rules by visiting restricted areas without permission.
