Foreign investors scramble after Supreme Court's big call
Foreign investors are quickly reshuffling their offshore setups in places like Mauritius and Singapore after the Supreme Court ruled that shell companies without real business activity can't claim India-Mauritius tax treaty perks.
The decision, linked to Flipkart's indirect share transfers, has everyone rethinking how they operate to stay on the right side of Indian tax laws.
Why does it matter?
This ruling means Indian authorities can now go after untaxed foreign gains—even if companies look legit on paper.
Investors are hustling to show they have real operations by hiring local directors and renting offices, but old shortcuts like Tax Residency Certificates don't really help anymore.
Big names like Tiger Global are already facing huge tax demands, and global funds could see more costs and legal headaches as the rules get tighter.
If you're interested in startups or global investing, this is a major shift in how money moves into India.