An investigation found that Mumbai international airport’s duty-free shops run by billionaire Gautam Adani’s business group breached the law by selling nicotine pouches, which the government considers a public health hazard, according to documents from an investigation.
Adani denies wrongdoing and is asking judges to declare that a law covering drugs and cosmetics does not apply to duty-free shops and nicotine pouches, according to court papers reviewed by Reuters. Lawyers say the case could set a precedent on how India regulates sales at such outlets and a government win could block sales of one of the world’s fastest-growing nicotine products in India’s airports.
India banned e-cigarettes and approved certain nicotine replacements like patches and chewing gums following a registration process under the Drugs and Cosmetics Act. Nicotine pouches remain illegal and unapproved.
Tobacco kills 1.35 million people each year in India and a government study in June called nicotine pouches “a new and largely unregulated public health concern,” with widespread illegal sales and consumption among people aged 18 to 40.
After receiving complaints from anti-nicotine group Mothers Against Vaping, India’s drug department inspected duty-free shops at Mumbai’s international airport in March and found imported nicotine pouches were being sold in the departure zone without the necessary approvals, government documents show.
“Nicotine pouches also fall under the definition of a drug … a valid registration certificate and import license are mandatory,” an assistant drugs controller wrote in an April 2 letter to the airport’s customs authority, attaching an “investigation report.”
Mumbai Travel Retail, a joint venture led by Adani with Dubai’s Flemingo, was asked to discontinue sales of nicotine pouches and seek approvals, government letters show.
Adani declined to comment. Flemingo and the Indian health and customs authority did not respond to requests for comment.
Selling a drug without a license could draw a prison term of at least three years and a fine of at least 100,000 rupees ($1,049), or three times the value of the drugs confiscated, whichever is higher.
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Adani’s firm has told authorities the shops in the international departure area conduct business “beyond the customs frontiers of India” and are outside the regulatory reach of domestic regulations, its non-public High Court filing shows.
“If a murder occurs in the store, will Indian police have no powers to arrest? They will have … Can they sell guns or ammunition? No,” said Murali Neelakantan, who was previously general counsel at Indian drugmakers Cipla and Glenmark Pharmaceuticals.
On June 24, judges in Mumbai’s High Court said “no coercive action” should be taken on the existing stock of pouches at Mumbai’s duty-free shops, scheduling the case for a July 14 hearing.