New Delhi, Sept. 23 -- The Bombay high court on Tuesday ruled that duty-free shops at airports cannot claim exemption from Indian regulatory laws simply because they operate beyond the customs barrier.

The ruling came on a plea filed in April by Mumbai Travel Retail Ltd, an Adani Group-backed retailer, and Flemingo Dutyfree Shop Pvt. Ltd over the sale of tobacco-free nicotine pouches at duty-free shops in the international departure area of Mumbai's Chhatrapati Shivaji Maharaj International Airport, which is operated by the Adani Group.

The companies argued that Indian drug authorities could not take action against them because the shops are located in the international departure area and domestic regulatory laws, including the Drugs an...