UK Court of Appeal Rejects India's Challenge to Andhra Pradesh Bauxite Arbitration

The Court of Appeal of England and Wales has ruled against India in a dispute over whether a UAE investment authority can pursue arbitration over a failed bauxite mining project in Andhra Pradesh.The Court upheld an earlier ruling allowing Ras Al Khaimah Investment Authority (RAKIA) to proceed with its claims against India under the India-UAE Bilateral Investment Treaty (BIT).A Bench of Lord Justices Males, Phillips and Miles dismissed India's appeal against a June 2025 judgment of the English High Court, which had overturned an arbitral tribunal's finding that it lacked jurisdiction to hear the dispute.The Court held that the government action directed at a company could qualify as action directly affecting a foreign investor's investment, even when the investment was held through a minority shareholding."It follows that, for the purposes of the BIT, a minority shareholding allocated to an Investor in exchange for capital investment in a company is not regarded as just an interest in the company," Lord Justice Phillips observed,The dispute arose from a 2007 memorandum of understanding between the Government of Andhra Pradesh and the Government of Ras Al Khaimah to establish an alumina refinery, aluminium smelter and power plant in Andhra Pradesh.RAKIA invested approximately $42.5 million in ANRAK Aluminium Limited, which was incorporated to implement the project. Its shareholding was subsequently diluted to approximately 12%.The project depended on bauxite supplies from the