The Appellate Division of the Supreme Court has upheld a High Court order directing British American Tobacco (BAT) to relocate its cigarette factory from the residential DOHS area in Mahakhali. BAT must move the factory by July 7, 2025.

The Mahakhali factory occupies 16 acres on leased land. The Cantonment Board had decided as early as 1990 to move the factory due to environmental and public health concerns, but BAT delayed the relocation through administrative maneuvers. When the lease expired in 2024, the Cantonment Board refused to grant a third extension and set a one-year deadline for the factory’s removal. BAT challenged this decision in court, first at the High Court and then at the Appellate Division, but its appeals were rejected.

Experts emphasize the public health importance of relocating tobacco factories from residential areas. Globally, urban cigarette and bidi factories are being moved to minimize environmental and health risks.

BAT had previously benefitted from regulatory changes, such as the Environment Ministry moving tobacco from the “red” to the “orange” list in 2023, and held a minor 0.64% government share in the company.