The Bombay High Court has declined to intervene in the ban on selling nicotine pouches at Adani-operated Mumbai Airport and directed the Central Drugs Standard Control Organisation (CDSCO) to determine whether the products fall within the scope of India’s drug laws.
A bench of Justices Suman Shyam and Advait Sethna ordered the sellers who challenged the restriction to submit complete details of the nicotine pouches, along with the required documents, to CDSCO within four weeks. After receiving the information, CDSCO must issue a reasoned written order within 30 days deciding whether nicotine pouches are covered by the Drugs and Cosmetics Act, according to the report by Loksatta – Mumbai.
The court also declined to accept the sellers’ argument that the products should be treated as goods meant for re-export because they were sold only to passengers travelling abroad from Mumbai’s international terminal. The bench observed that goods enter India when they come within Indian territory and are therefore subject to import-related restrictions under Indian law.
The ruling further stated that duty-free shops do not receive an exemption from domestic regulatory laws. The court noted that imported goods do not become free from the operation of Indian laws even when they are brought into the country for limited purposes such as storage or re-export.
The legal dispute centres on the classification of nicotine pouches. The court did not itself decide whether the products are medicines or whether they should be treated as narcotic substances. Instead, it left the determination of whether nicotine pouches fall within the scope of drug legislation to CDSCO after the sellers submit the product information and supporting records.
The direction places the next stage of the dispute with the national drug regulator rather than the airport operator or the sellers. CDSCO’s decision will determine the regulatory position applicable to the products, subject to any further legal challenge.
The case also clarifies the limits of the duty-free model at an international airport. Although duty-free stores cater to passengers leaving the country and operate within a distinct retail environment, the court’s observations indicate that their goods remain subject to Indian import and regulatory controls while they are within Indian territory.
The sellers must submit their complete product information and documents to CDSCO within four weeks. The regulator is then required to pass a reasoned written order within 30 days of receiving the material.
