A complete ban on manufacture, sale, storage, distribution of gutkha in Gujarat was made effective from September 11, 2012.
The ban covers gutkha and pan masala that contain tobacco or nicotine. Pan masala without tobacco/nicotine was not banned under the same notification at first; only those versions with tobacco/nicotine were prohibited. There was an exemption for 100% export-oriented units (manufacturers who export all their products). They were not subject to the ban for goods destined outside the state.
Soon after the ban, many shops were raided. For example, more than 22,000 shops were inspected and ~15,000 pouches suspected of containing banned products were seized. Penalties include fines (up to Rs 5 lakh) and imprisonment (up to six months) for offences.
Despite the ban, there have been reports of under-the-counter sales, or vendors hiding gutkha, or selling ingredients separately in order to get around the law.