Bombay High Court dismisses Adani's claim that duty-free shops escape domestic law

The Bombay High Court has turned down a petition arguing that duty-free shops in international departure areas fall outside the reach of India's domestic laws due to their location beyond territorial jurisdiction.

The case centered on whether retail outlets in international departure lounges at airports operate in a legal grey zone insulated from Indian regulations. Gautam Adani's legal representatives contended that shops located in these zones exist in spaces that should be considered beyond India's territorial jurisdiction, thereby exempting them from domestic law compliance.

However, the court rejected this interpretation, affirming that such commercial establishments remain subject to India's regulatory framework regardless of their physical location within airport facilities. The judgment establishes that geographical proximity to international borders does not provide immunity from domestic legal obligations.

The decision carries implications for how commercial operations in airport duty-free zones are regulated and taxed. The ruling reinforces the principle that businesses operating within Indian airports, even in international transit areas, cannot claim exemption from domestic statutes governing commerce, labor, and other regulatory matters.

The court's position aligns with established legal doctrine that sovereignty over airport territories, including international departure areas, remains firmly with the Indian state for regulatory purposes.