Bombay HC rejects Adani plea on duty-free shop immunity

The Bombay High Court has ruled that goods sold at duty-free shops are subject to domestic laws, rejecting an Adani Group plea that its nicotine pouch sales at Mumbai airport fell outside India's territorial jurisdiction. The court said in its September 22 order that the domestic regulatory regime applies in full force to goods in duty-free shops within Indian territory.

The Adani Group had argued in April that nicotine pouches are a recent innovation and not a drug, and that shops in international departure areas lie beyond India's laws. Indian authorities countered that stocking the pouches was a substantive violation of drug laws and a serious public health risk. The court did not rule on whether nicotine pouches are drugs, instead directing Adani to make representations before drug regulators, who will decide on the merits.

The case is widely seen as setting a precedent on duty-free sales. The Adani Group manages eight Indian airports and has an $11 billion expansion plan for duty-free shops. Adani did not immediately respond to requests for comment.