India’s Supreme Court ruled that Tiger Global must pay taxes on the capital gains from its 2018 sale of a stake in Flipkart to Walmart Inc. The decision applies domestic tax law to the transaction, marking a rare reversal for a foreign investor in the country for the first time.

The 2018 deal saw Tiger Global sell a 10% stake in Flipkart for $1.5 billion, a move that helped Walmart expand its foothold in India. Indian tax authorities argue that the sale falls under the capital gains regime, while the firm contends it should be treated as a dividend today.

Analysts warn that the ruling could prompt other U.S. funds to reassess their Indian holdings, potentially tightening capital flows. Tiger Global may appeal, but the Supreme Court’s stance signals a tougher stance on foreign investment profits. Market watchers will track the case’s impact on cross‑border trade for investors in 2024.