The Adani Duty-Free Nicotine Pouch Case has reached the Bombay High Court after regulatory authorities questioned the sale of imported nicotine pouches at Mumbai International Airport’s duty-free outlets. Following inspections by the Central Drugs Standard Control Organisation (CDSCO), officials directed Mumbai Travel Retail to discontinue sales until required approvals are obtained. The Adani-led joint venture has denied wrongdoing and argued that the Drugs and Cosmetics Act does not apply to duty-free shops or nicotine pouches. The matter remains pending before the court.
Adani Duty-Free Nicotine Pouch Case: Mumbai Airport Sales Face Regulatory Scrutiny as Bombay High Court Hears Challenge
An investigation into nicotine pouch sales at Mumbai International Airport’s duty-free shops has triggered regulatory scrutiny, with the Adani-led operator challenging the applicability of India’s drug laws before the Bombay High Court.
Mumbai Airport duty-free nicotine pouch sales have come under regulatory scrutiny after an official investigation found imported nicotine pouches were allegedly sold without mandatory approvals, prompting legal proceedings that could influence future regulation of duty-free retail across India.
According to investigation documents reviewed by Sprouts News, duty-free outlets operated by Mumbai Travel Retail, a joint venture led by Gautam Adani’s business group with Dubai-based Flemingo, allegedly sold nicotine pouches despite regulatory concerns over the products.
The Adani-led venture has denied any wrongdoing. Court records indicate the company has requested the Bombay High Court to declare that provisions of the Drugs and Cosmetics Act do not apply to duty-free shops or nicotine pouches.
Legal experts say the litigation could establish an important precedent for the regulation of duty-free retail in India. A decision favouring the government could significantly restrict nicotine pouch sales at airports nationwide.
India has prohibited electronic cigarettes while permitting certain nicotine replacement therapies, including nicotine patches and chewing gums, following approval under the Drugs and Cosmetics Act. Nicotine pouches, however, remain unapproved and are not authorised for sale under the existing regulatory framework.
CDSCO Investigation into Mumbai Airport Duty-Free Sales
According to government records, tobacco consumption causes approximately 1.35 million deaths annually in India. A government study published in June described nicotine pouches as “a new and largely unregulated public health concern,” citing reported illegal sales and use among individuals aged between 18 and 40 years.
Following complaints from the anti-nicotine organisation Mothers Against Vaping, the Central Drugs Standard Control Organisation (CDSCO) conducted inspections at Mumbai International Airport’s duty-free outlets during March.
The inspection reportedly found imported nicotine pouches being sold within the international departure area without mandatory regulatory approvals. Government documents indicate investigators considered the products subject to India’s pharmaceutical regulatory framework.
In an April 2 communication addressed to Mumbai Airport customs authorities, an Assistant Drugs Controller stated that nicotine pouches fall within the statutory definition of a drug and therefore require a valid registration certificate together with an import licence before sale.
The investigation resulted in Mumbai Travel Retail being directed to discontinue nicotine pouch sales and obtain the necessary regulatory approvals before resuming any such commercial activity, according to official correspondence.
Gautam Adani’s group declined to comment on the matter. Flemingo and the Ministry of Health and Family Welfare also did not respond to requests seeking their comments.
Under the Drugs and Cosmetics Act, selling a regulated drug without the required licence may attract imprisonment of at least three years and financial penalties prescribed under the statute, subject to judicial determination.
Also Read: Karmala ITI Renamed After Madandas Devi as Maharashtra Announces ₹5,400 Crore Upgrade.
Bombay High Court Examines Adani’s Legal Challenge
According to court filings, the Adani-led operator has argued that duty-free shops situated within international departure areas conduct business “beyond the customs frontiers of India” and therefore remain outside the scope of domestic regulatory provisions.
Legal expert Murali Neelakantan, former General Counsel at Cipla and Glenmark Pharmaceuticals, questioned that interpretation, arguing that criminal and regulatory laws continue to operate within airport premises regardless of customs status.
On June 24, the Bombay High Court directed that no coercive action be taken regarding the existing stock of nicotine pouches at Mumbai Airport’s duty-free shops pending further consideration. The matter has been listed for hearing on July 14.
Court documents also indicate that the Adani-led operator argued nicotine pouches are “not a drug” and represent a “recent innovation” that was not specifically contemplated when existing tobacco control legislation was enacted.
Customs records reportedly show that since August, the company imported Philip Morris’ Zyn nicotine pouches worth more than 29,000 US dollars, along with White Fox nicotine pouches manufactured by Swedish Smokeless Solutions valued at approximately 7,700 US dollars.
Philip Morris has stated that sales of Zyn in the United States doubled in 2025 compared with 2023. Meanwhile, the June government study identified both Zyn and White Fox among nicotine pouch brands reportedly being sold illegally by vendors in India.
Separately, Flemingo Dutyfree has informed the Bombay High Court that it also operates duty-free outlets at international seaports, including Mumbai, and expressed concern that similar regulatory action could affect its operations while it was preparing to stock nicotine pouch products.
The outcome of the Bombay High Court proceedings is expected to clarify the regulatory position governing nicotine pouch sales at India’s duty-free outlets and may influence future enforcement involving airport and seaport retail operators.
Readers’ Appeal
If you have information regarding illegal nicotine pouch sales, tobacco products, or regulatory violations, contact investigative journalist Unmesh Gujarathi and his team at 9322755098. Your identity will be kept strictly confidential.
Editorial Note:
This article is based on publicly available FIR records, court case references, and reports published by multiple media organisations. The information is presented in the context of ongoing investigations and public interest reporting. Sprouts News does not make any judicial determination regarding the individuals mentioned and does not intend to defame any person or organisation. Any individual seeking clarification or wishing to provide an official response may contact the editorial team with verifiable documentation. The information is presented for journalistic and informational purposes.
