India’s Tax Court Slams Tiger Global—Offshore Exit Strategies Get Riskier

India’s Supreme Court just handed global investors a wake-up call: if you’re using offshore shell companies to dodge taxes on your billion-dollar Indian exits, the rules just got harder.

The Indian Supreme Court ruled against Tiger Global, denying tax relief under the India–Mauritius treaty for its Flipkart stake sale to Walmart in 2018.

The bench emphasized that "Taxing an income arising out of its own country is an inherent sovereign right of that country," warning against structures "designed primarily to dilute that authority."

Tiger Global used Mauritius-based entities to claim treaty protection, but the court rejected this as a tax-avoidance strategy under India’s "substance over form" doctrine.

The firm invested $1.2 billion in Flipkart from 2009–2018, selling its stake for $1.4 billion. The tax dispute centered on whether its 2018 exit qualified for grandfathered exemptions under the treaty.

Experts note the ruling reinforces India’s push to challenge offshore "treaty-routing" structures, potentially complicating future cross-border exits. Ajay Rotti, a tax law analyst, noted: "Treaty protection is no longer automatic. Investors must now demonstrate economic substance in their offshore entities to qualify for benefits."