The US streaming behemoth Netflix has opened an investigation into its operations in India by the Indian government. According to a Reuters exclusive, Indian agencies are investigating Netflix for alleged racial discrimination, visa irregularities, and other offences.
On July 20 of this year, Nandini Mehta, the former Director of Business and Legal Affairs at Netflix India, received an email from the Ministry of Home Affairs about the probe. 2020 saw Mehta depart the business.
Deepak Yadav, an official from the Ministry of Home Affairs Foreigners Regional Registration Office (FRRO), signed the email. The letter read, “We have received certain details concerning 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, Mehta told Reuters in the email statement that she is suing Netflix in the US for allegedly discriminatory treatment based on race and gender and wrongful termination. But Netflix has refuted the accusations. Mehta expressed her gratitude for the MHA’s investigation in India and her hope that the authorities will make the results public.
Yadav of FRRO declined to comment when Reuters approached him about the situation, claiming he could not communicate with the media about it. In addition, the Ministry of Home Affairs did not reply to enquiries from the news organisation. However, a representative for Netflix denied knowing anything about the Indian government’s probe.
The government requested records and details regarding the US case
Notably, Netflix has been accused of tax avoidance since 2023, which has caused financial difficulties for the business’s operations in India. However, because it contains claims of racial discrimination against Netflix India and non-compliance with visa laws, the current inquiry has opened a fresh Pandora’s box.
There was not much information in the email that Mehta received concerning the problems the ministry is investigating with Netflix. For those who don’t know, the Ministry of Home Affairs Intelligence Bureau, the domestic intelligence agency, collaborates closely with FRRO. It is the primary organisation investigating visa compliance for foreign nationals and authorisations to enter politically sensitive areas of the nation. The FRRO serves as a point of contact for various government agencies in matters about foreign nationals.
India claimed in 2023 that Vivo, a Chinese smartphone manufacturer, and its affiliates in India violated visa laws by travelling to sensitive areas without the ministry’s approval. Certain country sections, such as Sikkim, Jammu, and Kashmir, are considered sensitive and require specific clearance for foreign visitors.
The lawsuit and Nandini Mehta’s employment at Netflix
Nandini began working at Netflix in April 2018 and remained an employee until April 2020, primarily in the Mumbai and Los Angeles offices. She filed a lawsuit against Netflix in 2021 in Los Angeles County Superior Court in California, alleging, among other things, wrongful termination and discrimination based on race and gender. In response to the accusations made in court, Netflix refuted every single one. According to the employer, Mehta was let go because she used her work credit card to pay for personal bills totalling tens of thousands of dollars. Mehta declared in an interview with Reuters that she would keep up her struggle for justice. The matter’s status hearing is set for September 23 in Los Angeles.
Mehta has expressed worries about potential tax evasion in India, which would result in a ban on the streaming services, according to The Hollywood Reporter. She had expressed to her superiors her worries that the Indian arm would be closed if the operations in India were minimised. The issues were brought up following the receipt of a tax note.
Netflix India is under investigation for its content
Since launching in India, Netflix has encountered many difficulties, many of which have been content-related. Protests and criticism were aimed at several web series and films for their allegedly anti-Hindu and anti-Indian elements. In the most recent instance, Netflix came under fire for the web series “IC814: The Kandhar Hijack,” which used the Hindu codenames the terrorists had used during the hijacking without revealing their true identities.
The 1999 Kandahar hijacking served as the basis for the television show. In addition, the show gave terrorists a positive portrayal while portraying Indian agencies like RAW poorly. After the Ministry of Information and Broadcasting called Netflix India’s Content Head and provided a warning about the content the company produces for Indian audiences, the channel put the names of the terrorists in a disclaimer.
