India Customs becomes second agency to fight Adani Group over nicotine pouches
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An inspection by health officials at billionaire Gautam Adani’s Mumbai international airport in March found that the sale of nicotine pouches at its duty-free shops was against the law.
PHOTO: REUTERS
- India's Customs authorities have joined the health ministry in opposing Adani Group's sale of nicotine pouches at airport duty-free shops, stating they are not exempt from regulations.
- Adani argues duty-free shops are outside domestic regulations and challenges the ban in Mumbai High Court, saying Customs gave no prior warning to stop sales.
- Nicotine pouches remain unapproved in India, but Adani has imported popular brands like Zyn and White Fox, aiming to expand its airport and duty-free business significantly.
AI generated
NEW DELHI – India’s Customs authorities have joined the country’s Health Ministry in its fight against the Adani Group over the sale of nicotine pouches at airports, arguing that its duty-free shops have only tax advantages and are not immune from other regulations.
An inspection by health officials at billionaire Gautam Adani’s Mumbai international airport in March found that the sale of nicotine pouches at its duty-free shops was against the law – a decision that his company is now challenging in Mumbai’s High Court.
“The concept of goods being ‘outside Customs frontiers’ for taxation purposes does not grant immunity from regulatory controls,” the Customs department said in a filing submitted to Mumbai judges on June 22.
Adani has argued that shops in the international departure area are outside the reach of domestic regulations, and in a July 13 filing seen by Reuters, said its legal challenge was valid as Customs had asked it to stop the sales without issuing a warning notice.
The group has also asserted that goods sold by duty-free shops to departing passengers are based on legal norms under which they are placed in sealed bags and are not supposed to be used until the passengers are outside India.
The Customs authorities said that interpretation was “untenable” as passengers who take possession of duty-free goods can then freely consume them. Adani and the Indian authorities did not respond to Reuters’ queries.
Nicotine pouches – one of the world’s fastest-growing nicotine products – have become popular in many countries but remain unapproved in India.
Philip Morris says its Zyn brand sales in the US have surged, doubling in 2025 compared with 2023.
Adani runs eight airports in India and is targeting a US$11 billion (S$14.2 billion) expansion that includes a bet on duty-free offerings.
Since August 2025, Adani’s company has imported Zyn and White Fox brands from Swedish Smokeless Solutions worth more than US$35,000, Reuters has reported.
The case will next be heard on July 28. REUTERS
