India Challenges Adani Airport Sales of Unapproved Nicotine Pouches

Government investigators claim duty-free shops at Mumbai airport are violating drug laws by selling nicotine pouches, which are currently unapproved for sale in India.

MUMBAI — The Indian government has launched a formal push to halt the sale of nicotine pouches at Mumbai International Airport, citing severe public health risks and regulatory non-compliance. Documents from a recent investigation reveal that duty-free shops operated by a joint venture involving billionaire Gautam Adani’s business group have been selling these products without the mandatory approvals required under the nation's drug regulations.

The government’s crackdown, which intensified in April following complaints from anti-nicotine advocacy groups, is centered on the classification of nicotine pouches as drugs. Indian drug authorities maintain that these products require specific registration and import licenses, neither of which had been secured by the airport retailer.

Regulatory Breach and Investigation

The investigation was triggered after authorities received reports from the organization Mothers Against Vaping. In March 2026, an inspection of the international departure zone at Mumbai airport revealed that imported nicotine pouches were being sold freely to travelers.

In an April 2 letter, an assistant drugs controller explicitly informed the airport’s customs authority that nicotine pouches fall under the purview of the Drugs and Cosmetics Act. The official stated that the sale of these products without a valid registration certificate and import license constitutes a breach of law. Government documents indicate that the joint venture, Mumbai Travel Retail—a partnership involving the Adani Group and Dubai-based Flemingo—was formally directed to cease sales and seek the necessary regulatory clearances.

Adani Group Challenges Jurisdiction

In response to the government’s scrutiny, the Adani Group has moved to challenge the findings in court. According to legal filings reviewed by reporters, the company denies any wrongdoing and is requesting that judges issue a declaration that India’s drug and cosmetic laws do not apply to shops located in the international departure area.

The company argues that these duty-free zones conduct business beyond India's customs frontiers and should therefore remain outside the reach of domestic drug regulations. On June 24, the Bombay High Court granted interim relief, ordering that no coercive action be taken against existing stocks of nicotine pouches at the airport, pending further legal proceedings.

Public Health Concerns

The Indian government considers nicotine pouches to be a growing public health hazard. A recent government study characterized the products as an "unregulated public health concern," noting their rising popularity among the 18 to 40 age demographic.

While India has strict prohibitions against electronic cigarettes and other Electronic Nicotine Delivery Systems (ENDS) under the Prohibition of Electronic Cigarettes Act, 2019, the status of nicotine pouches has remained a regulatory gray area. Authorities are now moving to clarify that these products require rigorous clinical evaluation before they can be legally marketed.

Why It Matters

This case is poised to set a major legal precedent for the regulation of novel nicotine products across India. A victory for the government would likely result in an immediate blockade of nicotine pouch sales at all major airport retail outlets in India. Conversely, a ruling in favor of the airport retailer could create a significant regulatory loophole, exempting international departure zones from national health and safety standards governing tobacco and nicotine alternatives.

Key Facts at a Glance

• Regulatory Status: Indian authorities classify nicotine pouches as "drugs," requiring registration and import licenses.

• The Conflict: Adani Group argues that airport duty-free shops are exempt from domestic drug and cosmetic laws.

• Legal Action: The Bombay High Court is currently presiding over the case, with hearings ongoing as of mid-July 2026.

• Health Risk: Government officials cite the product as an unregulated health threat, particularly for the 18–40 age demographic.

FAQ

1. Why does the government consider nicotine pouches a health risk?

The government views them as highly addictive, unregulated products that target young people and lack the safety data required for public sale under Indian drug laws.

2. Why is the Adani Group claiming exemption?

The company argues that international departure zones are outside of domestic customs frontiers, and therefore, Indian drug and cosmetic regulations should not apply to retailers in these areas.

3. What is the current status of the sales?

Following a June 24 Bombay High Court order, no coercive action is being taken against existing stocks of nicotine pouches while the legal challenge remains ongoing.

4. Are other nicotine replacement products allowed in India?

Yes, specific nicotine replacement therapies like patches and gums are permitted, but only after they undergo formal registration and approval under the Drugs and Cosmetics Act.

Source: Ministry of Finance (DRI), Drugs and Cosmetics Act, Bombay High Court Filings