India Seeks to Quash Adani’s Duty-Free Pouch Challenge

India’s government is seeking to dismiss Adani Group’s legal challenge over the sale of nicotine pouches at Mumbai’s Chhatrapati Shivaji Maharaj International Airport, arguing that the products represent a “substantive violation” of drug laws and a public health risk. Authorities said nicotine pouches, which are classified as drugs under Indian law, remain unapproved and cannot be sold simply because they are imported, stored in customs-bonded warehouses, or marketed to departing international passengers. “The fact that they are stored in a customs-bonded warehouse does not mean they ⁠are not physically present in India,” the government said.

Adani argued that drug regulations should not apply to duty-free sales and has challenged the regulatory interpretation in court, a case that could set a precedent for how India handles the sale of nicotine pouches at international airports. The government maintained that nicotine is an addictive chemical and warned that allowing unapproved products could expose consumers to products with unverified safety and quality standards.