Netflix Under Scanner Over Potential Visa Violations, Racial Discrimination: What We Know So Far

Netflix, however, stated that it is "unaware of an investigation by the Indian Government."

Netflix has grown its footprint in India, attracting around 10 million users.

Source : Grant Davies/Unsplash

The Centre has launched an investigation into the business operations of US streaming platform Netflix, focusing on potential visa violations and racial discrimination, according to Government communications. The inquiry was revealed through a July 20 email from the Indian Ministry of Home Affairs to Nandini Mehta, a former Netflix executive, and was reviewed by Reuters.

The email, sent by Deepak Yadav of the Foreigners Regional Registration Office (FRRO), outlines concerns over Netflix's compliance with Indian laws, including allegations of improper visa usage, tax evasion, and other business irregularities. Yadav wrote, "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."

Nandini Mehta, who left Netflix in 2020, is already embroiled in legal action against the company in the US, accusing them of wrongful termination, racial discrimination, and gender bias. Netflix has denied these allegations. Mehta expressed her support for the Indian probe but refrained from detailing the Government’s claims.

Netflix stated that it is "unaware of an investigation by the Indian Government," reported Reuters.

Netflix has grown its footprint in India, attracting around 10 million users. While it has expanded its catalogue to feature more local content, the streaming service has faced criticism in the past, particularly over content considered culturally insensitive. Recently, Netflix was compelled to add disclaimers to an Indian series following backlash regarding its portrayal of hijackers.

Netflix Faces Broader Scrutiny

Netflix, already embroiled in a tax dispute with Indian authorities since 2023, is now reportedly under investigation for a wider range of allegations, including visa compliance and potential racial discrimination issues. This broader probe has not been previously disclosed.

The Government's communication did not specify which agencies are conducting the investigation, but it is known that the Foreigners Regional Registration Office (FRRO) is closely involved. The FRRO, which often works with the Intelligence Bureau, handles issues related to foreigners’ visa regulations and approvals for visiting restricted areas. Some regions in states like Jammu & Kashmir and Sikkim are classified as sensitive, requiring special permissions for foreign visitors.

In a related case, former Netflix legal executive Tanya Mehta, who worked at the company’s Los Angeles and Mumbai offices between 2018 and 2020, is also under the Government's radar. She has been asked to provide documentation as part of the investigation. Mehta, who sued Netflix in 2021 for wrongful termination, racial discrimination, and gender bias, claims she was unjustly fired. Netflix, however, denies the allegations, asserting that her dismissal was due to improper use of a corporate credit card for personal expenses.

Mehta's case is scheduled for a status hearing in a Los Angeles court on Monday, where she has vowed to continue seeking justice. Netflix has categorically rejected all claims in the case.