India’s customs authorities joined the health ministry’s legal challenge against Adani Group’s sale of nicotine pouches at airport duty-free shops, arguing that duty-free status provides tax benefits but does not exempt retailers from broader regulatory requirements. In a filing to the Mumbai High Court, customs officials said goods being “outside customs frontiers” for taxation purposes do not grant immunity from other laws, rejecting Adani’s argument that international departure-area shops are beyond the reach of domestic regulations.
The company has challenged a health ministry inspection that found nicotine pouch sales at Mumbai International Airport’s duty-free stores violated Indian law, arguing the products are legally sold under duty-free rules and sealed for use after passengers leave the country. The case is scheduled for its next hearing on July 28.