India probing Netflix for visa violations, racial discrimination, email shows

India is investigating the business practices of U.S. streaming giant Netflix's NFLX.O local operations, including allegations of visa violations and racial discrimination, according to a government email sent to a former executive.

The details of India's investigation were included in a July 20 email, reviewed by Reuters, which was written by a home ministry official to Netflix's former director of business and legal affairs for India, Nandini Mehta, who left the company in 2020.

"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 company has been engaged in while conducting its business in India," he added.

In an emailed statement, Mehta said she is pursuing a lawsuit in U.S. against Netflix for alleged wrongful termination as well as racial and gender discrimination - charges the company denies.

Mehta said she welcomed the Indian investigation and hopes the authorities make their findings public, but did not elaborate on the allegations made by the government.

Yadav declined to comment, saying he was not authorized to speak to media. The FRRO and India's home ministry did not respond to Reuters queries.

A Netflix spokesperson said the company was "unaware of an investigation by the Indian government."

The Indian official's email shows growing scrutiny of Netflix in India, where it has roughly 10 million users and which it considers a growth market where companies target affluent people in the nation of 1.4 billion people.

Over the years, the U.S. streaming giant has developed more local content featuring Bollywood actors.

It has also often faced heat in India over its content deemed insensitive by some users. This month, it was forced to add new disclaimers to an Indian series about a plane hijack after social media outrage and government anger over what they said was Muslim hijackers being shown as Hindus.

A woman stands next to a logo of Netflix during an event in Mumbai, India, February 29, 2024. Reuters

Seeking documents, U.S. lawsuit

While it is known that Netflix has since 2023 faced an Indian tax demand - which it is challenging - the existence of a broader investigation into allegations including visa compliance and racial discrimination has not been previously reported.

The Indian government's email did not elaborate which agencies are looking at issues concerning Netflix. The FRRO works closely with home ministry's Intelligence Bureau, the domestic intelligence agency, and is the main agency looking into foreigners' visa compliance and permissions to visit so-called "sensitive" regions.

Last year, India accused Chinese smartphone player Vivo and its Indian affiliates for breaching visa rules by visiting certain "sensitive" regions without permission. India classifies parts of certain states such as India-administered Kashmir in north and Sikkim in east as restricted areas.

The FRRO also acts as a liaison in matters related to foreigners with other government offices.

Mehta worked at the company's Los Angeles and Mumbai offices from April 2018 to April 2020, her LinkedIn profile shows.

The Indian government email asked her to provide "details/documents" as she was a former legal executive of the company.

In 2021, Mehta sued Netflix in Los Angeles County Superior Court in California for alleged wrongful termination and racial and gender discrimination, among other things, U.S. court filings show.

Netflix has in U.S. court denied "each and every allegation" and said in its statement that Mehta was fired for repeatedly using her corporate credit card for tens of thousands of dollars in personal expenses.

Mehta said she will "continue to fight for justice." Her case is set for a status hearing on Monday in Los Angeles.