India has begun investigating the local operations of US streaming giant Netflix, probing allegations of visa violations, racial discrimination, and other business malpractices. The investigation, revealed through a July 20 email from a home ministry official, Deepak Yadav, sheds light on mounting concerns about Netflix’s practices in one of its most significant growth markets.
The email, addressed to Nandini Mehta, Netflix’s former Director of Business and Legal Affairs for India, outlines the Indian government’s interest in looking into alleged misconduct by the streaming service. The probe covers violations ranging from visa compliance and tax evasion to incidents of racial discrimination in the workplace.
Former Executive Involved in the Investigation
Nandini Mehta, who left Netflix in 2020, is at the heart of this investigation. She had previously filed a lawsuit in the United States, accusing flix of wrongful termination and racial and gender discrimination. Mehta has publicly welcomed India’s probe and hopes the government will share its findings.
Mehta’s tenure at Netflix saw her working at both the Los Angeles and Mumbai offices between 2018 and 2020. Her legal battle against the company continues in California, where she claims to have been unjustly fired for personal reasons. Flix, however, has denied these allegations, stating that Mehta misused her corporate credit card for personal expenses.
Netflix Faces Broader Scrutiny in India
While Netflix is currently challenging an Indian tax demand from 2023, this investigation marks a significant escalation in scrutiny. With approximately 10 million subscribers in India, Netflix has made significant investments in local content, often featuring Bollywood stars and major Indian productions. Despite its success, the company has not been free from controversy. Earlier this month, Flix was forced to add disclaimers to an Indian series after public backlash over the portrayal of hijackers.
The Indian government email reveals that authorities are seeking “details/documents” from Mehta regarding Netflix’s practices in India. The Foreigners Regional Registration Office (FRRO), which closely works with India’s domestic intelligence agency, is leading the investigation, specifically looking into Netflix’s visa compliance, particularly the conduct of foreign nationals working for the company.
This isn’t the first time India has scrutinized foreign companies for visa violations. Last year, India accused Chinese smartphone giant Vivo of breaching visa rules by visiting restricted regions without proper clearance, signaling that Flix could face similar concerns if found in violation.
Netflix Responds to Allegations
A flix spokesperson has denied knowledge of the investigation, stating that the company is “unaware of an investigation by the Indian government.” However, the company has consistently denied allegations brought by Mehta, both in the US and now, indirectly, in India.
Despite Netflix’s denial, the email from India’s home ministry suggests otherwise, raising questions about the company’s future in India. India, with its vast population of 1.4 billion people, remains a lucrative market for streaming services. Netflix’s success in India has hinged on its ability to deliver content that resonates with affluent urban users, but government scrutiny could complicate its operations.
Broader Implications for Streaming Giants in India
India’s investigation into Netflix could have broader implications for other foreign streaming platforms operating in the country. As the demand for content in India continues to rise, companies like Netflix have focused heavily on localization, which includes hiring international and local talent. However, with increasing regulatory oversight, they may need to navigate a more challenging environment in terms of visa compliance and labor practices.
The investigation also highlights the growing importance of workplace culture and racial dynamics in global companies. Mehta’s accusations of racial and gender discrimination reflect deeper issues in the tech and entertainment industries, which have faced increasing scrutiny over the treatment of employees from diverse backgrounds.
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