Madam Speaker, I thank the hon. Member for this very pertinent question. Madam Speaker, the Supreme Court of India has on 15 January 2026 in the case of Tiger Global International Holdings vs. The Authority for Advance Rulings issued a ruling which had cast doubt scope on the grandfathering of investments made before 01 April 2017 and negotiated during the protocol amending the India Mauritius Double Taxation Avoidance Agreement in 2016. This has caused much concern across the financial services sector which, as the House is aware, is the first pillar of the Mauritian economy. Madam Speaker, following the entry into force of the protocol of the 2016, amending the India-Mauritius DTA, the right to tax capital gains arising from sales of shares held in the Indian company by an investor who is a tax resident in Mauritius was as follows – • shared acquired before 31 March 2017 were fully grandfathered and would be taxed in Mauritius; • shares acquired as from 01 April 2017, if sold before 31 March 2019, 50% would be taxed in India, and • any shares acquired after 31 March 2019 may be taxed solely by India. Madam Speaker, the ruling unsettled one of the most fundamental assurances given to foreign investors in India, therefore, exposing bona fide established structures to the risk of being subjected to the application of the general Anti-Avoidance rules under the Chapter 10A of the India Income Tax Rule 1962. Madam Speaker, I wish to inform the House that following the Supreme Court ruling, this Government initiated immediately a series of high-level initiatives to find appropriate solutions. The Cabinet was apprised on the following day, on 16 January 2026, and I chaired a meeting which was attended by the Governor of the Central Bank, the Chief Executive of the Financial Services Commission, the representatives of Ministry of Finance, Mauritius Revenue Authority, Mauritius Finance and Financial Services Professionals from the industry to assess the impact of the judgement on the global business sector. During the meeting with the members, it was agreed that in the aftermath of the Supreme Court Judgement, the Mauritius IFC was confronted with two main challenges – 1. How to ascertain that the existing transactions made before 01 April 2017 which were grandfathered under the protocol of 2016 remained protected, and 2. how to ascertain that entities which are resident in Mauritius demonstrates sufficient substance to be eligible for exemptions under India-Mauritius DTA. Madam Speaker, in February 2026, the hon. Prime Minister, Dr. Navinchandra Ramgoolam, directly raised the issue with the Prime Minister of India, Shri Narendra Modi, reaffirming the strength of the strategic partnership between the two countries. During a bilateral meeting with the Indian Prime Minister, Shri Narendra Modi, he discussed the India-Mauritius Double Taxation Avoidance Agreement, Prime Minister, Shri Narendra Modi, assured of the continued stance of India of not taking any action that would undermine the existing economic benefits that Mauritius currently enjoys under the DTA. In parallel, during a mission in February in India, I met with Mr Ravi Agarwal, the chairman of the CBDT, and Mr Arvind Shrivastava, Secretary of the Department of Revenue, to share the concerns of the industry and our government following the Tiger Global case. Madam Speaker, as the House may be aware, within weeks of those discussions held with the Indian authorities on 31 March 2026, the Central Board of Direct Taxes of India moved to correct this position for the Rule 128 of the Income Tax Amendment Rules 2026 which has been gazetted to restore in explicit legislative terms, the grandfathering protection that the court has effectively diluted. It is noted that the concerns were well received by the Indian authorities demonstrating that they are attentive to our requests. Madam Speaker, this is clear evidence of the success of the economic diplomacy taken at the highest level by the hon. Prime Minister with the Indian Prime Minister. This measure, first, reaffirms the grandfathering protection established by the 2016 protocol amending the DTA between India and Mauritius, paving the way for a revival of confidence among foreign investors regarding Mauritius. Hence, as from the 01 April 2026, international investors can rest assured that the transfer of investment made before 01 April 2017 will remit exempt from GAAR. Madam Speaker, in so far as the future structures are concerned, in order to ensure that our operators continue to benefit from the remaining incentives under the DTA, works are currently being underway to consider reviewing the conditions for issuance of Tax Residence Certificate in order to provide the necessary comfort to the Indian authorities. Thank you.

Thank you. Yes, hon. Lobine first.

Thank you, Madam Speaker. May I ask the hon. Minister, with regard to the Financial Services Commission, have they conducted any impact assessment on any potential capital outflows or restructuring of the global business entities following this judgement?

I did ask that question, Madam Speaker, and there were no major outflows or companies leaving the Mauritian jurisdiction and that is why we acted very swiftly and quickly and quite aggressively at various levels to get this sorted out.

Yes, second.

Is the Minister in a position to provide data with regard to whether there has been any recent decline in India-focused investment flows routed through Mauritius since this ruling?

I can say that in general, since the 2016 protocol was amended, there had been a decline and Mauritius as it is widely known, lost its place as the first FDI driver to India. And Singapore and US were sort of first, second and Mauritius is sort of back as second position. I am not aware of major outflows but I can certainly ask FSC to provide data regarding the post-Tiger Global judgment but when I asked that question, the answer was there has not been major outflows.

Okay, hon. Rookny!

Thank you, Madam Speaker. Has the Ministry specifically engaged with the Financial Services Commission and the Economic Development Board to quantify the number of global business licence entities currently exposed to the enhanced scrutiny under India’s GAR Framework following this judgment?

I can certainly ask the question.

Yes, second?

Madam Speaker, does the hon. Minister accept that given Mauritius’ long- standing role as the preferred gateway for FDI into India through its global business sector, this judgment represents a structural threat to that positioning and if so, what is the Government’s contingency plan?

As I said in my answer, Madam Speaker, it did raise a lot of concern after the judgment came but the initiative taken by this Government and the rule that was published in the Government Gazette of India has secured our investments that were made prior to 01 April 2017. As regards the future ones, as I said, we are working – the Ministry, the MRA, the AG’s office – to see how we can ensure that we can reassure the Indian authorities regarding substance requirements.

Yes?

Madam Speaker, allow me rephrase it. What I meant was if the India route is a dying route, what will be our contingency plan to keep the global business sector alive?

Madam Speaker, I can reassure the hon. Member that India route is not a dying route. As I said, we were first and then we sort of became third. Now we are back to the second place. So, it is of course a very competitive environment and that is why we have to be kept on our toes all the time but it is definitely not a dying route. What the Ministry is doing is that we have to keep on consolidating the India market but we as a sector, we have to also diversify. That is why we are working on an Africa strategy and that is why more and more focus is also going into diversifying our markets into Africa.

Yes, one more.

Yes, thank you.

Maybe one last.

One last, yes.

Yes!

May I ask the hon. Minister, are there immediate plans to re-negotiate or further clarify provisions of this treaty with India to safeguard our jurisdiction after this judgment?

Madam Speaker, that is a good intention to have. We have been trying to negotiate that for a long time but I understand that the Indian side – I myself have met them at least twice since last year – they cannot bring Mauritius different from other countries because they have relationship with so many other countries. So, on multilateral basis, they cannot do that. We will have to compete on an international level but I am reassured that in Mauritius, we are doing what needs to be done as a sector from a government and regulatory point of view but also as an industry that we can promote, grow and maintain our Indian market as strong as possible.

Yes, alright. Now, the next one is going to be replied by the hon. Minister of Local Government. Dr. Ms Daureeawo! DRAINS, RIVERS & CANALS – ILLEGAL DUMPING – MEASURES IMPLEMENTED