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 an
investigation.
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. Lawyers say the case could set a precedent on how
India regulates sales at such outlets and a government win could
block sales of one of the world’s fastest-growing nicotine
products in India’s airports.
India banned e-cigarettes and approved certain nicotine
replacements like patches and chewing gums following a
registration process under the Drugs and Cosmetics Act. Nicotine
pouches remain illegal and unapproved.
Tobacco kills 1.35 million people each year in India and a
government study in June called nicotine pouches “a new and
largely unregulated public health concern,” with widespread
illegal sales and consumption among people aged 18 to 40.
After receiving complaints from anti-nicotine group Mothers
Against Vaping, India’s drug department inspected duty-free
shops at Mumbai’s international airport in March and found
imported nicotine pouches were being sold in the departure zone
without the necessary approvals, government documents show.
“Nicotine pouches also fall under the definition of a drug
… a valid registration certificate and import license are
mandatory,” an assistant drugs controller wrote in an April 2
letter to the airport’s customs authority, attaching an
“investigation report.”
Mumbai Travel Retail, a joint venture led by Adani with
Dubai’s Flemingo, was asked to discontinue sales of nicotine
pouches and seek approvals, government letters show.
Adani declined to comment. Flemingo and the Indian health
and customs authority did not respond to requests for comment.
Selling a drug without a license could draw a prison term of
at least three years and a fine of at least 100,000 rupees
($1,049), or three times the value of the drugs confiscated,
whichever is higher.
Reuters is first to report the details of the investigation
into Adani sales and its court challenge in Mumbai.
CAN GUNS BE SOLD AT AIRPORT?
Adani’s firm has told authorities the shops in the
international departure area conduct business “beyond the
customs frontiers of India” and are outside the regulatory reach
of domestic regulations, its non-public High Court filing shows.
“If a murder occurs in the store, will Indian police have no
powers to arrest? They will have … Can they sell guns or
ammunition? No,” said Murali Neelakantan, who was previously
general counsel at Indian drugmakers Cipla and Glenmark
Pharmaceuticals.
On June 24, judges in Mumbai’s High Court said “no coercive
action” should be taken on the existing stock of pouches at
Mumbai’s duty-free shops, scheduling the case for a July 14
hearing.
POUCHES A “RECENT INNOVATION”
Adani runs eight airports in India and is targeting an $11
billion expansion that includes a bet on duty-free offerings. At
Mumbai’s international airport, it runs more than 30 duty-free
shops.
In court, Adani said nicotine pouches “are not a drug” and
are a “recent innovation” that was not anticipated by existing
tobacco control laws, documents show.
Since August, Adani’s firm imported Philip Morris’
Zyn nicotine pouches in various flavours worth more than
$29,000, and the White Fox brand from Swedish Smokeless
Solutions worth $7,700, customs records showed. The companies
did not respond to Reuters queries.
Philip Morris says Zyn’s U.S. sales in 2025 doubled from
2023. The June Indian government study said both Zyn and White
Fox were being sold by Indian vendors illegally.
Separately, Flemingo Dutyfree has told the High Court it
operates shops at international seaports – including in Mumbai –
and fears similar actions as it was “in the process of stocking”
nicotine pouches, documents show.
Seeking licenses for nicotine pouches will compel suppliers
to withdraw them from the market, making “the duty free industry
in India unattractive to passengers,” it said.