An official investigation has revealed that duty-free shops at Mumbai International Airport, managed by the Adani Group, have been selling nicotine pouches in direct violation of Indian law. Government authorities flagged these sales following inspections, citing concerns that the products—which are currently unapproved and categorized as illegal under the Drugs and Cosmetics Act—pose a significant public health risk. Officials have formally notified Mumbai Travel Retail, a joint venture involving the Adani Group, to cease sales immediately and obtain the necessary regulatory licenses, warning that non-compliance could result in substantial fines and potential imprisonment.

In response, the Adani Group has mounted a legal challenge in the Mumbai High Court, arguing that the duty-free zone operates beyond the reach of domestic drug regulations because it sits outside the country's customs frontiers. The company contends that nicotine pouches are a modern innovation not covered by existing statutes, rather than being classified as traditional drugs. Legal experts, however, remain skeptical of this jurisdictional argument, noting that the outcome of this case could set a massive precedent for the future of nicotine product sales across India’s rapidly expanding travel retail sector. For now, the court has granted a temporary reprieve, stalling any coercive action against the existing stock until the next hearing.