Netflix India operations under investigation over allegations of visa, tax violations and discrimination
- In Reports
- 11:13 PM, Sep 23, 2024
- Myind Staff
India is currently investigating the business practices of Netflix’s local operations, focusing on allegations related to visa violations and racial discrimination. This information was disclosed in a July 20 email from a home ministry official to Nandini Mehta, the former director of business and legal affairs for Netflix in India, who left the company in 2020. The email, reviewed by Reuters, outlines the government’s concerns regarding these practices.
“This is regarding visa and tax violations concerns regarding the business practices of Netflix in India,” wrote Indian official Deepak Yadav from the Foreigners Regional Registration Office (FRRO) of the home ministry in New Delhi.
“We have received certain details in this regard w.r.t (with respect to) the stated company’s conduct, visa violation, 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,” he added.
In an emailed statement, Nandini Mehta stated that she is pursuing a lawsuit against Netflix in the U.S. for alleged wrongful termination, as well as racial and gender discrimination—claims that the company has denied.
Nandini Mehta expressed her support for the investigation and hopes that the authorities will make their findings public, although she did not elaborate on the allegations put forth by the government. Meanwhile, Mr Yadav declined to comment, stating he was not authorised to speak to the media. The Foreigners Regional Registration Office (FRRO) and the Home Ministry did not respond to Reuters’ inquiries.
A Netflix spokesperson stated that the company was “unaware of an investigation by the Indian government.” The official’s email highlights the increasing scrutiny of Netflix in India, where it has approximately 10 million users and views the country as a key growth market, targeting affluent consumers in a nation of 1.4 billion people.
Over the years, Netflix has expanded its local content offerings, featuring Bollywood actors prominently. However, the platform has frequently faced criticism in India for content considered insensitive by some users. Recently, it was compelled to add new disclaimers to an Indian series about a plane hijacking following social media outrage and government backlash regarding the portrayal of Muslim hijackers as Hindus.
While it is known that Netflix has faced an Indian tax demand since 2023, which presents significant challenges, the existence of a broader investigation into allegations of visa compliance and racial discrimination has not been previously reported.
The government's email did not specify which agencies are investigating the issues concerning Netflix. The Foreigners Regional Registration Office (FRRO) collaborates closely with the Intelligence Bureau, the home ministry’s domestic intelligence agency, and is the primary authority overseeing visa compliance and permissions for foreigners visiting “sensitive” areas.
Last year, India accused the Chinese smartphone company Vivo and its Indian affiliates of violating visa rules by visiting certain “sensitive” regions without proper authorisation.
The FRRO also serves as a liaison on matters concerning foreigners with other government offices.
Nandini Mehta was employed at Netflix’s Los Angeles and Mumbai offices from April 2018 to April 2020, according to her LinkedIn profile.
The government email requested that Nandini Mehta provide “details/documents” due to her role as a former legal executive at Netflix.
In 2021, Mehta filed a lawsuit against Netflix in the Los Angeles County Superior Court, alleging wrongful termination and racial and gender discrimination, among other claims, according to U.S. court filings. Netflix has denied “each and every allegation” in court and stated that Mehta was terminated for repeatedly using her corporate credit card for tens of thousands of dollars in personal expenses.
Ms Mehta announced she will “continue to fight for justice.” Her case is set for a status hearing on Monday in Los Angeles.
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