India is conducting a formal investigation into Netflix's business practices within the country, examining potential visa violations, tax evasion, and racial discrimination.
According to a government email reviewed by Reuters, the investigation was revealed in a July 20 email sent by an official from the Foreigners Regional Registration Office (FRRO) to Netflix's former director of business and legal affairs in India, Nandini Mehta, who left the company in 2020.
The email, written by Indian official Deepak Yadav, stated that Netflix is under scrutiny for several alleged infractions, including visa and tax violations, illegal business structures, and accusations of racial discrimination. Yadav added that the company may have engaged in these practices while conducting business in India.
Nandini Mehta, now pursuing a lawsuit in the U.S. against Netflix for wrongful termination and discrimination based on race and gender, welcomed the Indian government’s probe. Although she did not provide further details on the allegations, she expressed hope that the findings of the investigation would be made public.
Netflix, meanwhile, stated that it was "unaware of an investigation by the Indian government."
The FRRO and India's home ministry have not commented on the matter.
This investigation is an escalation of scrutiny on Netflix, which considers India a key growth market. With approximately 10 million users in the country, the platform has developed numerous local shows featuring Bollywood stars. However, Netflix has previously faced criticism in India, including for content deemed offensive by some viewers. Most recently, the company added disclaimers to an Indian series following backlash over its depiction of religious identities.
The Indian government's email also seeks documents from Mehta, a former legal executive, underscoring the broader nature of the investigation. While Netflix has already been dealing with a tax dispute in India, the allegations related to visa compliance and racial discrimination represent new challenges for the U.S.-based streaming giant.
Mehta's U.S. lawsuit against Netflix is scheduled for a status hearing in Los Angeles, where she continues to fight for justice. Netflix has denied all of her allegations, claiming that Mehta was dismissed for misusing her corporate credit card for personal expenses.
The investigation into Netflix comes at a time of heightened scrutiny of foreign companies operating in India, particularly with regard to compliance with local laws.