OTT platform Netflix India is under government investigation for visa violations, racial discrimination, tax evasion and several business practice irregularities. Reuters has given this information citing a government email.
The investigation was revealed in an email sent on July 20 by Deepak Yadav, an official of the Foreigners Regional Registration Office (FRRO), India's Home Ministry, to Nandini Mehta, Netflix's former director of business and legal affairs in India.
What is written in the government email?
The email reads, 'This email is about visa and tax violation concerns related to Netflix's business practices in India. In this regard, we have received some details related to many malpractices including the company's conduct, visa violations, illegal structures, tax evasion and incidents of racial discrimination, in which the company has been involved while running its business in India.'
Netflix's response to the allegations
A Netflix spokesperson told Reuters the company had no knowledge of the investigation being conducted by the Indian government.
Mehta's support in the case and investigation
Nandini Mehta left Netflix in 2020. After this, she filed a lawsuit against Netflix in the US for wrongful termination, racial and gender discrimination. However, Netflix denies these allegations.
Mehta welcomed the Indian government's investigation and hoped that the results of the investigation would be made public. However, he refused to give further information about many allegations.
OTT platform Netflix has around 10 million i.e. 1 crore subscribers in India.
Increasing scrutiny in India over Netflix
There are already several investigations going on against Netflix in India. Netflix has around 10 million subscribers in India. The company has invested heavily in local content production involving Bollywood celebrities.
However, Netflix has also faced controversies over content considered insensitive by some viewers and government officials. In addition to the current investigation, Netflix is challenging the Indian government's tax demand from 2023.
The scope of the government's investigation
The FRRO email did not specify which agencies were involved in the investigation. The FRRO works closely with India's Intelligence Bureau and is primarily responsible for monitoring visa compliance of foreigners and permissions in restricted areas. However, the FRRO also collaborates with other government agencies on matters related to foreigners.
Role of Nandini Mehta in the investigation
Nandini Mehta worked in Netflix's Los Angeles and Mumbai offices from 2018 to 2020. The Indian government's email requested her to provide documents and details related to the investigation due to her former role as a legal executive in the company.
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