NEW DELHI, Sept 22 (Askume) – India is investigating U.S. streaming giant Netflix (NFLX.O) , according to a government email sent to a former Indian executive.
Details of India’s investigation are contained in an email sent on July 20 and seen by Askume by a Home Ministry official to Nandini Mehta, Netflix’s former director of commercial and legal affairs in India, who left the company in 2020.
“This relates to visa and tax irregularities relating to Netflix’s business practices in India,” wrote Deepak Yadav, an Indian official at the Foreigners Regional Registration Office (FRRO) in the Home Ministry in New Delhi.
“We have received certain details about the company’s conduct, visa violations, illegal construction, tax evasion and other malpractices, including incidents of racial discrimination during the company’s business in India,” he said.
Mehta said in an emailed statement that she is suing Netflix in the United States for alleged wrongful termination and racial and gender discrimination, though the company has denied the allegations.
Mehta said she welcomed India’s investigation and wanted authorities to make the findings public, without elaborating on the allegations made by the government.
Yadav declined to comment, saying he was not authorised to speak to the media. The FRRO and India’s Home Ministry did not respond to Askume’ questions.
A Netflix spokesperson said the company was “not aware of any ongoing investigation by the Indian government.”
The email from Indian officials reflects growing scrutiny of Netflix in India, where the company has about 10 million subscribers and is considered a growing market as it targets customers in the country of 1.4 billion people.
The US streaming giant has developed more local content involving Bollywood actors in the past few years.
It has also faced persistent criticism in India as some users consider its content insensitive. This month, the company was forced to add a new disclaimer to an Indian series about plane hijackings after social media outrage over its portrayal of Muslim hijackers as Hindu .
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While Netflix is known to face challenging tax requirements in India starting in 2023 , widespread scrutiny over visa compliance and allegations of racial discrimination has not been undertaken previously.
The Indian government email did not specify which agencies were looking into the issues related to Netflix. The FRRO works closely with the Ministry of Home Affairs’ domestic intelligence agency, the Intelligence Directorate, and is the main agency responsible for visa compliance for foreigners and permissions to visit so-called “sensitive” areas.
Last year, India accused Chinese smartphone company Vivo and its Indian partners of violating visa rules by visiting some “sensitive” areas without permission. India has classified parts of some states, including Jammu and Kashmir in the north and Sikkim in the east, as prohibited areas.
The FRRO also serves as a liaison officer with other government agencies on foreign affairs.
According to his LinkedIn profile, Mehta worked in the company’s Los Angeles and Mumbai offices from April 2018 to April 2020.
The Government of India email asked her to provide “details/documents” as she was the former legal director of the company.
US court documents show that in 2021, Mehta sued Netflix in Los Angeles County Superior Court in California, alleging wrongful termination and racial and gender discrimination.
Netflix denied “every allegation” in a US court and said in a statement that Mehta was fired for repeatedly using thousands of dollars worth of company credit cards to pay for personal expenses.
Mehta said she would “continue to fight for justice.” A hearing on the status of her case will be held in Los Angeles on Monday.
