India's drug regulators found that duty-free shops at Mumbai's international airport, run by Gautam Adani's group, were illegally selling unapproved nicotine pouches. The government classifies the products as drugs requiring registration and import licenses. Adani is challenging the ruling in court, arguing the shops operate outside India's domestic regulatory reach — a case that could set a major precedent for airport retail regulation.
India's drug regulators have found that duty-free shops at Mumbai's Chhatrapati Shivaji Maharaj International Airport, operated by Gautam Adani's group, were selling nicotine pouches in violation of the country's Drugs and Cosmetics Act. The government classifies nicotine pouches as drugs requiring valid registration certificates and import licenses — neither of which were obtained. India had previously banned e-cigarettes and only approved select nicotine replacement products like patches and gums through a formal registration process.
Adani's group is pushing back, arguing in Mumbai's High Court that duty-free shops operate "beyond the customs frontiers of India" and are therefore outside domestic regulatory jurisdiction. On June 24, the court issued a stay on coercive action against existing stock, with a hearing scheduled for July 14. Legal experts warn the case could set a landmark precedent for how India regulates sales at airport outlets.
By the Numbers:
Why it matters: Nicotine pouches are one of the world's fastest-growing tobacco alternatives, particularly popular among 18–40-year-olds. India's court ruling could determine whether airports become a regulatory grey zone for such products — with significant implications for public health policy and the global duty-free retail industry.
