India is investigating the business practices of US streaming giant Netflix, including allegations of visa violations and racial discrimination. A government email sent to former executive Nandini Mehta revealed the details of India’s investigation, which included details about the company’s conduct, visa violations, illegal structures, tax evasion, and other malpractices. Mehta, who left Netflix in 2020, is pursuing a lawsuit in the U.S. against Netflix for alleged wrongful termination and racial and gender discrimination charges, which the company denies.
The Indian government’s email shows growing scrutiny of Netflix in India, where it has roughly 10 million users and 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 and has 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.
Netflix has faced an Indian tax demand since 2023, which it is challenging, but the existence of a broader investigation into allegations including visa compliance and racial discrimination has not been previously reported. The FRRO works closely with the 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.
Mehta worked at the company’s Los Angeles and Mumbai offices from April 2018 to April 2020. In 2021, she sued Netflix in Los Angeles County Superior Court in California for alleged wrongful termination and racial and gender discrimination. Netflix has in the 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.
(Reuters)
