In an order issued late on September 22, 2026, the Bombay High Court rejected the argument that items sold beyond the customs barrier lie outside the reach of Indian regulations, stating that “such goods would be subject to the law of the land” even when sold in duty‑free stores within Indian territorial jurisdiction.
The ruling follows a challenge launched by Gautam Adani’s conglomerate in April, when the group contested the Centre’s claim that its Mumbai airport shops were illegally stocking and selling nicotine pouches – a fast‑growing, unapproved nicotine product in India.
Indian authorities had told the court that the presence of nicotine pouches in the duty‑free outlet constituted a “substantive violation” of drug laws and posed a “serious public health risk”, arguing that the product is classified as a drug under existing regulations.
Adani Group, which operates eight Indian airports and is pursuing an $11 billion expansion plan that includes expanding duty‑free retail, denied any wrongdoing and argued that the international departure area lies beyond domestic jurisdiction.
The court did not rule on whether nicotine pouches qualify as a drug, but gave the Adani Group the opportunity to submit representations to the national drug regulator, which will decide the matter on its merits.
The Adani Group did not immediately respond to Reuters requests for comment on the judgment.