Indian court rejects Adani Group plea on duty-free shop regulations

An Indian court has ruled that goods sold in duty-free shops are subject to domestic laws, rejecting a legal challenge by the Adani Group. The ruling specifically concerns the sale of nicotine pouches at Mumbai international airport.

In April, the Adani Group challenged authorities who claimed the airport's duty-free shops were illegally stocking and selling nicotine pouches, which are unapproved in India and classified by New Delhi as drugs. Adani argued that shops located in international departure areas sit beyond India's territorial jurisdiction and are therefore outside the reach of domestic regulations.

The Mumbai High Court disagreed, stating in its order that such goods are “subject to the law of the land and would be governed by the regulatory regime in force even if the transaction takes place in the DFS (duty free shops), beyond the customs barrier.” The court clarified that the domestic regulatory regime applies in full force to goods brought into duty-free shops within Indian territorial jurisdiction.