India is investigating Netflix's local operations over allegations of visa violations, racial discrimination, and other illegal business practices. The investigation stems from concerns raised by a former Netflix executive who is suing the company for wrongful termination and discrimination. Netflix, a major player in the Indian streaming market, has faced criticism in the past for its content and portrayal of sensitive cultural issues.
India is investigating the business practices of US streaming giant Netflix's 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 about Netflix's business practices in India," wrote Indian official Deepak Yadav from the Foreigners Regional Registration Office (FRRO) of the home ministry in 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," according to him.
Mehta said via email that she was suing Netflix in the US on grounds of alleged wrongful termination, discrimination on the basis of race and gender, and other offences, all of which the corporation disputes.
Mehta did not address the government's accusations; instead, she expressed her support for the Indian probe and her hope that the authorities would make their conclusions available to the public. According to the Indian official's email, Netflix is facing increasing criticism in India, a country of 1.4 billion people, where it currently has around 10 million customers and is viewed as a potential opportunity for businesses catering to the country's rich population. The US streaming behemoth has produced more regional programming with Bollywood celebrities over the years.
It has also received criticism in India for its content, which some users consider disrespectful. This month, BBC was obliged to add fresh disclaimers to an Indian series portraying an aircraft hijack due to social media fury and government indignation over what they said were Muslim hijackers being portrayed as Hindus.