American Duty-Free Retail Giant UETA in Dog Fight with Asia
Pacific Rival Heinemann Over Jewar Airport Duty-Free Shops
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Airport Authority not Interested in Duty
Free Supply Chain to Service Indian Industry, Only Concern is Royalty for
Duty-Free Consumer Goods
Panama-based UETA Inc has approached the
Supreme Court challenging the award of duty-free and retail outlets at the
upcoming Noida International Airport to a consortium led by Heinemann Asia
Pacific. UETA has contested a Delhi High Court ruling that dismissed its plea
on the ground of lack of territorial jurisdiction, arguing that Noida
International Airport Ltd’s (NIAL) corporate office
operated from Delhi when the tender process was undertaken.
NIAL and Heinemann countered that the
airport is located in Uttar Pradesh and that NIAL’s corporate office has since
shifted to Noida, with only a camp office remaining in Delhi. The Supreme Court
bench observed that while the question of Delhi High Court’s jurisdiction is
debatable, it would make little practical difference if the Delhi High Court
were to decide the matter on merits, given that both parties’ counsel are based in Delhi.
Even
before Noida International Airport at Jewar commences
operation, two MNCs - Panama-headquartered UETA Inc and Singapore-based
Heinemann Asia Pacific - have locked horns over allotment of duty-free and
retail outlets at the soon to be operationalised airport that would decongest
traffic at Delhi airports.
UETA
on Tuesday (20.01.2026) challenged before the Supreme Court a decision of the
Delhi HC rejecting its challenge to the tender process for setting up,
development, operation, maintenance and management of duty-free outlets and
retail outlets at Noida International Airport. It challenged the award of
licence to the consortium of Heinemann-BWC Forwarders.
Appearing
for UETA, senior advocate Mukul Rohatgi said the HC erroneously rejected its
petition saying no cause of action has arisen in Delhi and hence Delhi HC had
no jurisdiction to adjudicate the dispute. He said the corporate office of NIAL
was in Delhi and the letters were addressed from there giving clear
jurisdiction to the HC.
NIAL
and Heinemann through their counsel said that the airport is in Uttar Pradesh
and that the corporate office of NIAL has since shifted from Delhi to Noida but
a camp office is maintained in Delhi to receive correspondence.
The
bench of CJI Surya Kant, and Justices Joymalya Bagchi
and Vipul M Pancholi said that even though issue of territorial jurisdiction of
Delhi HC over the dispute is debatable, since the counsel for both parties are
in Delhi, it would make no difference if Delhi HC adjudicated this dispute on
merits.