India Investigates Nicotine Pouch Sales at Mumbai Airport Duty-Free Shop
According to a Reuters report, an Indian investigation has determined that the sale of nicotine pouches at the Mumbai International Airport duty-free shop operated by a business group led by billionaire Gautam Adani violates Indian law. Adani has denied any wrongdoing and challenged the matter in court, arguing that India’s Drugs and Cosmetics Act should not apply to airport duty-free shops or the sale of nicotine pouches.
Key Highlights
- An Indian investigation found that the sale of nicotine pouches at the Mumbai airport duty-free shop violated the law.
- The duty-free shop in question is operated by Mumbai Travel Retail, a joint venture led by the Adani Group.
- Indian drug authorities classify nicotine pouches as “drugs,” requiring registration and import licenses.
- Adani denies the violation, asserting that duty-free operations fall outside the scope of Indian customs jurisdiction.
- The case is scheduled for further proceedings at the Bombay High Court on July 14.
Indian Authorities Investigate Nicotine Pouch Sales at Mumbai Airport
July 8, 2026. According to a Reuters report dated July 7, an Indian investigation determined that the sale of nicotine pouches at the Mumbai International Airport duty-free shop operated by a business group led by Gautam Adani violates Indian law. The Indian government views nicotine pouches as a new public health risk.
Indian Drug Authorities Find Nicotine Pouch Sales Lacked Required Approvals
Reuters cited investigative documents stating that Indian drug authorities inspected the Mumbai International Airport duty-free shop in March of this year following a complaint from the anti-nicotine group “Mothers Against Vaping.”
The inspection revealed that the duty-free shop in the international departure area was selling imported nicotine pouches without the required approvals.
In a letter dated April 2 addressed to airport customs officials, an assistant drug controller stated that nicotine pouches fall under the definition of “drugs,” making valid registration certificates and import licenses mandatory. An investigation report was attached to the letter.
Relevant documents indicate that Mumbai Travel Retail was ordered to halt the sale of nicotine pouches and apply for the necessary approvals. Mumbai Travel Retail is a joint venture led by the Adani Group in partnership with Dubai-based Flemingo.
Adani declined to comment to Reuters. Flemingo, as well as Indian health and customs authorities, did not respond to requests for comment from Reuters.
Adani Challenges India’s Nicotine Pouch Regulations in Court
According to Reuters, Adani has denied any wrongdoing and has asked the court to confirm that laws governing drugs and cosmetics do not apply to airport duty-free shops or nicotine pouches.
Court documents seen by Reuters show that Adani-affiliated companies informed regulators that their duty-free operations in international departure zones lie “beyond the Indian customs frontier” and thus fall outside the jurisdiction of domestic Indian regulations.
On June 24, a judge at the Bombay High Court ruled that no “coercive action” should be taken regarding the existing stock of nicotine pouches at the Mumbai airport duty-free shop. The case is scheduled for further hearings on July 14.
This case could set a significant precedent for how India regulates the sale of novel nicotine products in airport duty-free shops. Legal experts suggest that if the Indian government wins the case, it could halt the sale of nicotine pouches through these channels.
India Classifies Nicotine Pouches as Unapproved Products
Reuters reports that while India has banned e-cigarettes and permits the sale of certain nicotine replacement products—such as patches and gum—following registration under the Drugs and Cosmetics Act, nicotine pouches remain classified as unapproved and illegal products.
A study released by the Indian government in June described nicotine pouches as a “new and largely unregulated public health concern,” noting widespread illegal sales and consumption among people aged 18 to 40.
The study also mentioned that brands such as Zyn and White Fox are being sold illegally in India by suppliers.
Reuters reported that since August of last year, Adani-affiliated companies have imported various flavors of Philip Morris’s Zyn nicotine pouches (valued at over $29,000) and White Fox products from Swedish Smokeless Solutions (valued at approximately $7,700). The companies involved did not respond to inquiries from Reuters.
Airport Duty-Free Regulatory Boundaries Under Legal Review
A central point of contention in the case is whether duty-free shops in international departure zones can be considered exempt from India’s domestic drug regulations.
Murali Neelakantan, former general counsel for Indian pharmaceutical companies Cipla and Glenmark Pharmaceuticals, told Reuters that the fact a shop is located beyond the so-called customs frontier does not mean Indian police and regulators lack enforcement authority.
Citing the sale of firearms or ammunition as an example, he pointed out that airport shops could not claim an exemption allowing them to sell restricted or prohibited items.
Duty-Free Retailers Raise Concerns Over Future Nicotine Product Rules
Flemingo Dutyfree also stated in court filings that it operates duty-free shops at international seaports in India. Including the Port of Mumbai, and is concerned about facing similar regulatory action.
The company noted that it is preparing to stock nicotine pouches; a requirement to obtain specific licenses for these products would force suppliers out of the market and diminish the appeal of India’s duty-free sector to travelers.
Industry Impact and Future Outlook for Nicotine Pouches in India
This case highlights the complex legal landscape nicotine pouches face in India, where regulations intersect across the categories of e-cigarettes, nicotine replacement therapies, and pharmaceuticals.
Unlike markets such as the United States, Indian regulators currently classify nicotine pouches as unapproved pharmaceutical-like products rather than general consumer goods or tobacco alternatives.
Potential Impact on Nicotine Pouch Brands and Duty-Free Retailers
For nicotine pouch brands and duty-free retailers, the case could influence their strategic assessment of the Indian market—specifically regarding airports, seaports, and duty-free channels.
Should the court uphold the regulators’ position, sales of nicotine pouches in Indian duty-free outlets could face more explicit restrictions.
Adani Airport Retail Expansion Faces Regulatory Attention
For the Adani Group, the case also has implications for the expansion of its airport retail operations.
Reuters reports that Adani operates eight airports in India and plans to advance an $11 billion expansion strategy that includes its duty-free business; the group currently operates over 30 duty-free shops at Mumbai International Airport.
Future Developments to Watch in India’s Nicotine Pouch Market
Moving forward, attention will focus on the outcome of the Bombay High Court hearing scheduled for July 14, as well as whether Indian pharmaceutical, customs, and airport regulators provide further clarification regarding the legal status of nicotine pouches in duty-free channels.
Overall, this case is not merely a dispute over sales at airport shops; it also reflects the regulatory classification challenges nicotine pouches encounter when entering emerging markets.
For global nicotine pouch companies, the uncertainty surrounding the Indian market likely centers on three key issues:
- Whether nicotine pouches are classified as pharmaceuticals.
- Whether domestic regulations apply to duty-free channels.
- Whether import and sales require pharmaceutical registration and licensing.
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