Bombay High Court rejects Adani plea that duty-free shops are beyond domestic laws
The Bombay High Court ruled that duty-free shops at Indian airports are subject to domestic laws, rejecting the Adani Group's claim of extraterritorial immunity. The ruling specifically addresses the unauthorized sale of nicotine pouches, which regulators classify as illegal drugs.
Why it matters
This decision sets a significant legal precedent for the regulation of retail operations within international transit zones, potentially impacting the business models of major airport operators.
The Bombay High Court has ruled that goods sold at duty-free shops are not immune from domestic laws, dealing a blow to the Adani Group's airport sales of nicotine pouches, which the Centre calls illegal and regards as drugs.
In a case widely seen as setting a precedent on duty-free sales, Mr. Adani in April challenged Indian authorities who said its Mumbai international airport shops illegally stocked and sold nicotine pouches, one of the world's fastest-growing nicotine products, which remain unapproved in India.
Gautam Adani's group manages eight airports in India and has an ambitious $11 billion expansion plan , including for duty-free shops, to capitalise on the growing demand for air travel.
While authorities told the court that stocking nicotine pouches was a "substantive violation" of drug laws and a "serious public health risk", Mr. Adani denied any wrongdoing.
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