An Indian investigation found that Mumbai international airport's duty-free shops run by billionaire Gautam Adani's business group breached the law by selling nicotine pouches, which the government considers a public health hazard. According to documents from the investigation, India's drug department inspected duty-free shops at Mumbai's international airport in March following complaints from anti-nicotine group Mothers Against Vaping. The investigation revealed that imported nicotine pouches were being sold in the departure zone without the necessary approvals, as reported by Reuters.
An assistant drugs controller wrote in an April 2 letter to the airport's customs authority that 'nicotine pouches also fall under the definition of a drug' and that 'a valid registration certificate and import license are mandatory'. The government asked Mumbai Travel Retail, a joint venture led by Adani with Dubai's Flemingo, to discontinue sales of nicotine pouches and seek approvals. India banned e-cigarettes and approved certain nicotine replacements like patches and chewing gums following a registration process under the Drugs and Cosmetics Act, while nicotine pouches remain illegal and unapproved. The case holds the potential to redefine how India manages sales at international hub points, with the government's victory possibly halting the sales of rapidly popular nicotine products.
Adani denies wrongdoing and is asking judges to declare that a law covering drugs and cosmetics does not apply to duty-free shops and nicotine pouches. According to court papers reviewed by Reuters, Adani's firm told authorities the shops in the international departure area conduct business 'beyond the customs frontiers of India' and are outside the reach of domestic regulations. In court, Adani said nicotine pouches 'are not a drug' and are a 'recent innovation' that was not anticipated by existing tobacco control laws. On June 24, judges in Mumbai's High Court said 'no coercive action' should be taken on the existing stock of pouches, scheduling the case for a July 14 hearing.
The case could set a precedent on how India regulates sales at duty-free outlets, with a government win potentially blocking sales of one of the world's fastest-growing nicotine products in India's airports. Selling a drug without a license could draw a prison term of at least three years and a fine of at least ₹100,000 ($1,000) or three times the value of the drugs confiscated, whichever is higher. Since August, Adani's firm imported Philip Morris' Zyn nicotine pouches worth more than $29,000 and the White Fox brand from Swedish Smokeless Solutions worth $7,700, according to customs records.
Adani runs eight airports in India and is targeting an $11 billion expansion that includes a bet on duty-free offerings, with more than 30 duty-free shops at Mumbai's international airport. Flemingo Dutyfree has told the High Court it operates shops at international seaports and fears similar actions, as it was 'in the process of stocking' nicotine pouches. The company warned that seeking licenses for nicotine pouches will compel suppliers to withdraw them from the market, making 'the duty free industry in India unattractive to passengers'.
