Bombay High Court rules against Adani regarding duty-free shops

The Bombay High Court has ruled that duty-free shops operating within Indian airports are subject to domestic laws, dismissing a petition filed by the Adani Group. The legal challenge arose after authorities accused the company of illegally stocking and selling nicotine pouches at its Mumbai international airport retail locations.

The Adani Group, which manages eight airports across India, had argued that shops located in international departure areas exist beyond the country’s territorial jurisdiction. Consequently, the company contended that these retail spaces should be exempt from domestic regulatory frameworks. The group had sought to challenge the government's classification of nicotine pouches as unapproved drugs, maintaining that its operations were not in violation of existing statutes.

In response, government authorities argued that the sale of nicotine pouches constituted a substantive violation of national drug laws and posed a significant public health risk. Officials maintained that the products, which have seen rapid growth in global markets, remain unapproved for sale or distribution within India.

In an order issued on September 22, 2026, the High Court rejected the company’s jurisdictional argument. The court stated that goods sold at duty-free shops remain subject to the law of the land and are governed by the regulatory regime in force, regardless of whether the transaction occurs beyond the customs barrier.

This ruling is viewed as a significant precedent for the regulation of duty-free retail in India. The decision impacts the Adani Group’s broader expansion strategy, which includes an $11 billion investment plan aimed at increasing the company's footprint in the airport retail sector to meet rising demand for air travel.