MUMBAI: An inquiry discovered that the duty free stores operating in the international airport in Mumbai, India, run through a joint venture headed by Gautam Adani’s company, violated Indian laws in selling nicotine pouches, which the government regards as unapproved and dangerous products for public health.
Now, the Adani airport nicotine pouches India case has made its way into court where the decision will determine the precedents of how India controls the sale in its duty-free stores and whether the international airport falls within its jurisdiction for drugs.
E-cigarettes have been banned in India, while patches and chewing gums have been approved as nicotine replacement therapy through a registration procedure under the Drugs and Cosmetics Act. Nicotine pouches are not approved. Unlicensed selling of any drug in India will incur a jail sentence for at least three years, along with a fine of 100,000 rupees or thrice the amount of the seized drugs.
How The Investigation Started
Adani Airport Nicotine Pouches In India was an investigation that started when Mothers Against Vaping made complaints to the drug department in India. The drug department then carried out an inspection at the duty-free stores at Mumbai International Airport. They found nicotine pouches which were for sale illegally.
The government’s stand was laid down unequivocally in a letter dated April 2 from an assistant drugs controller to the customs authorities at the airport:
“Nicotine pouches come under the definition of a drug too … it is compulsory to have a registration certificate and an import license.”
Assistant Drugs Controller, India
Adani-Flemingo Mumbai Travel Retail – the joint venture between Adani and Dubai-based company Flemingo was ordered to stop selling the nicotine pouches and obtain the necessary licenses. Adani refused to comment on the matter of the probe. No comments were received from either Flemingo or the Indian health and customs authorities.
The Defence: Outside India’s Legal Boundaries
The legal dispute between the Adani airport and nicotine pouches in India hinges on the claim that the company made to the Mumbai High Court through its private legal submission. According to the company, businesses conducted in the international departure lounge are “beyond the customs frontiers of India” and thus outside the purview of domestic law.
The legal reasoning does have precedent in other nations. Duty-free zones have existed in legal grey areas for a long time in numerous jurisdictions. However, legal experts in India doubt this legal defense.
“If there is a murder inside the shop, do Indian laws give no power to make arrests? They will… Do they have the right to sell arms or ammunition? Not at all.”
Murali Neelakantan, former general counsel for Cipla and Glenmark Pharmaceuticals
It is an apt analogy. If being physically situated in the international departure area renders a shop immune from Indian law, the inevitable consequences of such logic are clearly ridiculous, as legal experts note.
Nicotine pouches, which are small packets of nicotine meant to be kept under the lip for nicotine consumption, have become one of the fastest growing nicotine products around the globe owing to their compact nature, discreet usage, and effective marketing strategies on a global level. The move of India to not approve this product is an intentional one, taking into account its impact on public health.
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A Public Health Dimension That Cannot Be Ignored
In the Adani airport nicotine pouches India case, there are public health implications beyond the duty free counters at the airport. The number of deaths in India due to tobacco is estimated to be around 1.35 million each year, one of the highest levels of deaths from tobacco use in the world. According to a study by the government that came out in June, nicotine pouches are “a new and largely unregulated public health problem.”
The Issues for the Court to Decide
The Bombay High Court has ordered on June 24th that “no coercive action” be taken regarding the stock of nicotine pouches in the duty-free shops, with the hearing scheduled for July 14th.
The issues involved in the Adani airport nicotine pouches India case, when decided upon, are going to decide much more than just this one issue:
Is the Indian drug legislation applicable in international departure lounge duty-free shops?
Can the duty-free shops sell those items which are explicitly prohibited in India under domestic laws?
How is the product safety standard to be maintained in the duty-free shops of India’s airports?
More is at Stake than Nicotine
Adani airport nicotine pouches India is essentially a case concerning pouches in an airport lounge. The stakes extend beyond that to encompass the regulation by India of the business environment in the country’s international airports, India’s drug regulations in the context of entry points/exit points, and whether companies can use jurisdictional exemptions to create exempt retail areas in some of the busiest public places in the nation.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
