Court Rejects Adani Plea that Duty-Free Shops Are Beyond Domestic Laws
The court said duty-free goods remain under Indian regulatory control, leaving Adani free to seek review from drug regulators over nicotine pouches.
- The Bombay High Court ruled late Tuesday that goods sold at duty-free shops are subject to domestic laws, rejecting the Adani Group's argument that such stores operate beyond Indian jurisdiction.
- Indian authorities alleged that stocking nicotine pouches constitutes a "substantive violation" of drug laws and a "serious public health risk," while Adani denied any wrongdoing.
- Adani argued in court that nicotine pouches are "not a drug" and a "recent innovation" exempt from scrutiny, yet the court ordered the "domestic regulatory regime will apply in full force" to DFS goods.
- Billionaire Gautam Adani's group manages eight airports in India and pursues an ambitious $11 billion expansion plan, which this ruling complicates as the group seeks to capitalize on growing air travel demand.
- The court declined to determine if pouches qualify as drugs at this stage, allowing Adani to make formal representations before Indian drug regulators, who will decide the matter on its merits.
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Indian court rejects Adani plea that duty-free shops are ...
Indian court rules duty-free shops subject to domestic laws, rejects Adani plea over nicotine pouch sales
NEW DELHI: An Indian court has ruled that goods sold at duty-free shops are not immune from domestic laws, dealing a blow to the Adani Group's airport sales of nicotine pouches, which New Delhi calls illegal and regards as drugs.In a case widely seen as setting a precedent on duty-free sales, Adani in April challenged Indian authorities who said its Mumbai international airport shops illegally stocked and sold nicotine pouches, one of the worl…
The Economic Times
Court rejects Adani plea that duty-free shops are beyond domestic laws
An Indian court has ruled that nicotine pouches sold at duty-free shops are subject to domestic laws. The Adani Group challenged the legality of their items, arguing they are not drugs and are innovatively classified. Authorities maintained that selling such products poses a public health risk and violates drug laws. The court concluded that regulations apply to goods sold within Indian territory, including duty-free areas.
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