Taming the Tiger: When India Chose Substance Over Structure
In 2018, Tiger Global exited Flipkart and earned billions.
On paper, the deal looked global: Mauritius entities sold Singapore shares to a Luxembourg buyer.
But in reality, the value came from India Indian customers, Indian operations, Indian growth.
Last week, the Supreme Court of India made one thing clear:
Economic reality matters more than legal wrapping.
The court said this wasn’t really a Mauritius–Singapore deal. It was an American fund selling Indian assets. And treaties cannot be used as a blanket shield when structures exist mainly to avoid tax.
This marks the practical end of “treaty shopping.”
India is no longer asking where your company is registered.
It is asking where your value is created.
Why This Matters
Old tax loopholes via Mauritius are effectively closed
GAAR overrides treaty benefits if substance is weak
India is asserting tax sovereignty over investor convenience
Foreign capital is still welcome but not at any cost.
As India prioritises transparency, domestic scale, and real operations, these segments gain:
HDFC Bank