On January 15, India’s Supreme Court ruled that Tiger Global must pay tax on profits from selling its 17% stake in Flipkart to Walmart in 2018. This overturned a 2024 Delhi High Court decision that allowed Tiger Global to claim tax relief under the India-Mauritius tax treaty. The court said tax residency certificates alone don't guarantee treaty benefits, especially if offshore companies lack real business activities. The ruling strengthens India’s power to tax foreign investors and increases scrutiny on offshore deals. It also challenges tax rules protecting investments made before April 2017. "Taxing an income arising out of its own country is an inherent sovereign right," said Judge JB Pardiwala. Tiger Global sold its stake for about $1.6 billion through Mauritius-based entities. Indian tax officials argued these entities were used only to avoid taxes. Experts warn this could unsettle investor confidence and increase legal risks for pre-2017 deals. The ruling follows India’s 2024 protocol amendment on tax treaties targeting shell companies. Mauritius has accounted for roughly $180 billion in India’s foreign investments since 2000. The new judgment may lead to more disputes and tougher tax audits for foreign investors. Private equity firms are re-evaluating old deals fearing fresh tax scrutiny. Despite the confidence hit, India remains a key investment target, though policy shifts like this may slow foreign fund inflows amid global trade worries.