Why an India court ruling on a 2018 deal is rattling foreign investors

BBC News - WorldCenterEN 5 min read 100% complete January 29, 2026 at 09:17 AM

AI Summary

long article 5 min

A recent Indian Supreme Court ruling regarding Tiger Global's 2018 sale of its Flipkart stake to Walmart is causing concern among foreign investors in India. The court overturned a previous decision, stating that Tiger Global must pay tax in India on the transaction, despite the India-Mauritius tax treaty. The ruling grants Indian authorities broader powers to scrutinize offshore corporate deals and potentially deny treaty benefits if offshore investment structures lack commercial substance. Experts warn that this decision could unsettle international investors, undermine policy stability, and negatively impact business sentiment due to the potential for increased scrutiny of past transactions. The case stems from Walmart's acquisition of Flipkart, where Tiger Global sold its 17% stake through Mauritius-based entities, initially claiming tax relief under the treaty.

Key Entities & Roles

Key Player Opposition Context

United States 60% Mauritius ×270% Flipkart ×380% Walmart ×290% Tiger Global ×3100% India ×5100%

Keywords

foreign investors 90% tax disputes 80% india court ruling 80% tax treaty 70% offshore investment 60% flipkart 60% tiger global 50% walmart 50% business sentiment 40% e-commerce 40%