India is currently investigating Netflix's business practices within the country, including allegations of visa violations and racial discrimination, according to a government email reviewed by Reuters. The email, dated July 20, was sent by a home ministry official, Deepak Yadav, to Nandini Mehta, Netflix’s former director of business and legal affairs for India, who left the company in 2020.

The email referenced concerns regarding visa and tax violations, as well as "illegal structures" and other alleged malpractices linked to Netflix’s operations in India. Yadav, from the Foreigners Regional Registration Office (FRRO) in Delhi, further mentioned claims of racial discrimination within the company.

Mehta, who is pursuing a lawsuit in the U.S. against Netflix for wrongful termination and racial and gender discrimination, welcomed the Indian government's investigation but did not comment on the specifics of the allegations. Netflix has denied her charges and stated that her termination was due to misuse of company funds for personal expenses.

Netflix, which has around 10 million users in India, said it was unaware of any investigation by the Indian authorities. India has become a key market for the streaming giant, particularly as it invests in local content and targets affluent consumers in the country.

The inquiry marks the latest instance of scrutiny over foreign companies in India, where Netflix has previously faced tax demands and controversy over content deemed insensitive. For instance, earlier this month, the company was compelled to add disclaimers to an Indian series following backlash over its portrayal of a plane hijack.

While Netflix is challenging a tax demand issued in 2023, the Indian government’s broader investigation into visa compliance, tax evasion, and racial discrimination has only recently come to light. The FRRO, which is closely linked with the Intelligence Bureau, is responsible for overseeing foreign companies' visa compliance.

Mehta, who worked at Netflix's offices in Los Angeles and Mumbai from 2018 to 2020, was asked by the Indian government to provide relevant documents due to her former role with the company. Her lawsuit against Netflix is ongoing in a U.S. court, with a status hearing scheduled in Los Angeles. Netflix has denied all of her allegations in the U.S. court proceedings.