The government of India has initiated an investigation into the business practices of US-based streaming giant Netflix’s India arm. As per an exclusive report by Reuters, Indian agencies are looking into allegations of visa violations, racial discrimination, and more against Netflix. Former Director of Business and Legal Affairs of Netflix India, Nandini Mehta, received an email on 20th July this year regarding the investigation from the Ministry of Home Affairs. Mehta left the company in 2020.
The email was undersigned by the Foreigners Regional Registration Office (FRRO), Ministry of Home Affairs official Deepak Yadav. The letter read, “We have received certain details in this regard with respect to the stated company’s conduct, visa violations, illegal structures, tax evasion, and other malpractices, including incidents of racial discrimination that the company has been engaged in while conducting its business in India.”
Notably, in the email statement, Mehta informed Reuters that she is pursuing a lawsuit in the US against Netflix for alleged wrongful termination as well as racial and gender discrimination. Netflix, however, has denied the allegations. Appreciating the investigation by the MHA in India, Mehta added that she hopes the authorities will make the findings public.
When Reuters contacted Yadav of FRRO about the matter, he declined to comment, stating he was not authorised to speak to the media on the matter. The Ministry of Home Affairs also did not respond to questions sent by the news agency. On the other hand, Netflix’s spokesperson denied having any knowledge of the investigation by the Indian government.
Government sought documents and information on the US lawsuit
Notably, since 2023, Netflix has faced allegations of tax evasion, which posed financial challenges to the company’s operations in India. However, the new investigation has opened a new Pandora’s box, as it includes allegations of non-compliance with visa regulations and racial discrimination against Netflix India.
The email sent to Mehta did not contain much information about the issues the ministry is looking into regarding Netflix. For those who are unaware, FRRO is an agency that works closely with the Ministry of Home Affairs’ Intelligence Bureau, the domestic intelligence agency. It is the main agency that looks into foreigners’ visa compliance and permissions to visit sensitive regions in the country.
The FRRO also acts as a liaison in cases related to foreigners with other government offices.
In 2023, India said Chinese smartphone maker Vivo and its Indian affiliates were breaching visa regulations by visiting sensitive regions without seeking permission from the ministry. Regions like Jammu and Kashmir and Sikkim are some of the sensitive areas in the country, and foreigners have to seek special permission to visit these places.
Nandini Mehta’s tenure with Netflix and the lawsuit
Nandini joined Netflix in April 2018 and worked with the company till April 2020 at the Los Angeles and Mumbai offices. In 2021, she sued Netflix in Los Angeles County Superior Court in California for alleged wrongful termination and racial and gender discrimination, among other things. Replying to the allegations in court, Netflix denied each and every claim. The company stated that Mehta was fired for repeatedly using her corporate credit card for tens of thousands of dollars in personal expenses. Speaking to Reuters, Mehta said she would continue her fight for justice. The status hearing of the matter is scheduled for 23rd September in Los Angeles.
According to The Hollywood Reporter, Mehta had raised concerns over possible tax evasion in India, which could lead to a ban on the streaming services. She had raised concerns with her superiors that downplaying the India operations might lead to the shutting down of the Indian arm. The concerns were raised after receiving a tax memo.
Netflix India facing scrutiny over content
Since Netflix began operations in India, it has faced numerous challenges, especially related to content. Several web series and movies faced criticism and protests for content deemed anti-Hindu and anti-India. In the most recent case, Netflix faced scrutiny over the web series “IC814: The Kandhar Hijack,” as the series failed to disclose the real names of the terrorists and used the Hindu codenames they had used during the hijack.
The series was based on the Kandahar hijacking of 1999. Furthermore, the series portrayed terrorists in a favourable light while Indian agencies like RAW were shown negatively. The channel added the names of the terrorists in a disclaimer after the Ministry of Information and Broadcasting summoned the Content Head of Netflix India and issued a warning regarding the content it publishes for the Indian audience.
