India to initiate tax recovery proceedings against Tiger Global following Supreme Court ruling

India’s revenue department will restart tax recovery proceedings against Tiger Global after a Supreme Court ruling held the firm’s Flipkart exit gains taxable under Indian law, reopening a long-running dispute with implications for foreign investors.

India will initiate tax recovery proceedings against US-based investment firm Tiger Global Management following a Supreme Court verdict related to its 2018 exit from Flipkart, a senior finance ministry official said on Friday.

The revenue department is preparing to issue a fresh tax demand after the apex court ruled that capital gains arising from Tiger Global’s sale of its Flipkart stake to Walmart Inc. are taxable under Indian domestic law. The ruling overturned an earlier judgment by the Delhi High Court that had favoured the investor.

According to the official, the transaction generated capital gains from an aggregate consideration exceeding ₹14,500 crore ($1.6 billion), making it one of the largest exits by a foreign investor in India’s e-commerce sector. The department will now move to recover the applicable tax dues.

In addition, a refund claim of around ₹970 crore filed by Tiger Global—and previously withheld during the dispute—will be added to the overall tax demand to be served on the firm, the official said. The person spoke on condition of anonymity as they were not authorised to speak publicly.

The Supreme Court’s ruling is seen as significant, as it may influence how India interprets tax treaties in cases involving offshore transactions and indirect transfers. Analysts say the decision could add to uncertainty for global investors seeking predictability on capital gains taxation.

Officials from India’s finance ministry and Tiger Global were not immediately available for comment outside regular business hours.