Netflix's tax dispute with Indian authorities, ongoing since 2023, now seems to have added a new complication: the government's investigation into possible infractions in its local operations, from visa violations to accusations of racial discrimination.

According to Reuters, in July 2024, the Foreigners Registration Office (FRRO) contacted Nandini Mehta, Netflix's former chief legal officer in India, asking for details about these alleged irregularities.

The mail, signed by official Deepak Yadav, mentions specific concerns about the use of visas by foreign employees of Netflix, irregular business structures and possible cases of racial discrimination in the company. According to the information, the Indian government has received complaints that have prompted this investigation.

Nandini Mehta, who left the company in 2020, is currently involved in a lawsuit against Netflix in the United States for wrongful termination and gender and racial discrimination. Netflix has denied the allegations and said Mehta was fired for using her corporate credit card to pay for "tens of thousands of dollars in personal expenses."

Mehta has expressed support for the investigation in India and has interest in the findings being made public. However, no additional details on the allegations mentioned by the Indian government have been provided so far.

On the other hand, Netflix has denied any knowledge of the investigation. A spokesperson for the company told Reuters that they were not aware of any official inquiry into its operations in India.
This comes at a critical time for the platform, which has identified India as a key market for its global expansion. With approximately 10 million users in the country, Netflix has invested heavily in local content production, tailoring its strategies to local audiences.

And speaking of content, among Netflix's most recent productions in India are films such as 'Murder Mubarak', a thriller starring Pankaj Tripathi and Sara Ali Khan, which explores the murder of a personal trainer at a recreation club. And others like 'Amar Singh Chamkila', a biopic about the legendary Punjabi singer, known as the "Elvis Presley of Punjab", which scored 88% on Rotten Tomatoes.

Netflix has also bet on the production of series, such as 'Heeramandi', directed by Sanjay Leela Bhansali, which tells a story of love and power in pre-independence India. In addition, Netflix has renewed several of its most popular series in the country, such as 'Kota Factory', whose third season follows the intense academic life of students in Kota.

Netflix's investment in Indian content has been significant, but it has also faced strong criticism. Some of its productions have been the subject of controversy, such as the series on the hijacking of flight IC 814, which sparked outrage on social networks and among the country's authorities for portraying the Muslim hijackers as Hindus, prompting the platform to add additional warnings about the portrayal of the characters.

In this context, the possible investigation by the Indian government would add a new layer of complexity for Netflix in a market with a population of 1.4 billion.