(1) Subject to the provisions of section 8, the Central Government may, by rules--

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(a) permit and regulate--

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(i) the cultivation, or gathering of any portion (such cultivation or gathering being only on account of the Central Government) of coca plant, or the production, possession, sale, purchase, transport, import inter-State, export inter-State, use or consumption of coca leaves;

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(ii) the cultivation (such cultivation being only on account of Central Government) of the opium poppy;

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(iii) the production and manufacture of opium and production of poppy straw;

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¹[(iiia) the possession, transport, import inter-State, export inter-State, warehousing, sale, purchase, consumption and use of poppy straw produced from plants from which no juice has been extracted through lancing;]

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(iv) the sale of opium and opium derivatives from the Central Government factories for export from India or sale to State Government or to manufacturing chemists;

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(v) the manufacture of manufactured drugs (other than prepared opium) but not including manufacture of medicinal opium or any preparation containing any manufactured drug from materials which the maker is lawfully entitled to possess;

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¹[(va) the manufacture, possession, transport, import inter-State, export inter-State, sale, purchase, consumption and use of essential narcotic drugs:

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Provided that where, in respect of an essential narcotic drug, the State Government has granted licence or permit under the provisions of section 10 prior to the commencement of the Narcotic Drugs and Psychotropic Substances (Amendment) Act, 2014 (16 of 2014), such licence or permit shall continue to be valid till the date of its expiry or for a period of twelve months from such commencement, whichever is earlier.]

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(vi) the manufacture, possession, transport, import inter-State, export inter-State, sale, purchase, consumption or use of psychotropic substances;

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(vii) the import into India and export from India and transhipment of narcotic drugs and psychotropic substances;

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(b) prescribe any other matter requisite to render effective the control of the Central Government over any of the matters specified in clause (a).

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(2) In particular and without prejudice to the generality of the foregoing power, such rules may

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(a) empower the Central Government to fix from time to time the limits within which licences may be given for the cultivation of the opium poppy;

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(b) require that all opium, the produce of land cultivated with the opium poppy, shall be delivered by the cultivators to the officers authorised in this behalf by the Central Government;

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(c) prescribe the forms and conditions of licences for cultivation of the opium poppy and for production and manufacture of opium; the fees that may be charged therefor; the authorities by which such licences may be granted, withheld, refused or cancelled and the authorities before which appeals against the orders of withholding, refusal or cancellation of licences shall lie;

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(d) prescribe that opium shall be weighed, examined and classified according to its quality and consistence by the officers authorised in this behalf by the Central Government in the presence of the cultivator at the time of delivery by the cultivator;

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(e) empower the Central Government to fix from time to time the price to be paid to the cultivators for the opium delivered;

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(f) provide for the weighment, examination and classification, according to the quality and consistence, of the opium received at the factory and the deductions from or additions (if any) to the standard price to be made in accordance with the result of such examination; and the authorities by which the decisions with regard to the weighment, examination, classification, deductions or additions shall be made and the authorities before which appeals against such decisions shall lie;

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(g) require that opium delivered by a cultivator, if found as a result of examination in the Central Government factory to be adulterated, may be confiscated by the officers authorised in this behalf;

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(h) prescribe the forms and conditions of licences for the manufacture of manufactured drugs, the authorities by which such licences may be granted and the fees that may be charged therefor;

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²[(ha) prescribe the forms and conditions of licences or permits for the manufacture, possession, transport, import inter-State, export inter-State, sale, purchase, consumption or use of essential narcotic drugs, the authorities by which such licence or permit may be granted and the fees that may be charged therefor;]

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(i) prescribe the forms and conditions of licences or permits for the manufacture, possession, transport, import inter-State, export inter-State, sale, purchase, consumption or use of psychotropic substances, the authorities by which such licences or permits may be granted and the fees that may be charged therefor;

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(j) prescribe the ports and other places at which any kind of narcotic drugs or psychotropic substances may be imported into India or exported from India or transhipped; the forms and conditions of certificates, authorisations or permits, as the case may be, for such import, export or transhipment; the authorities by which such certificates, authorisations or permits may be granted and the fees that may be charged therefor.

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(1) Without prejudice to the provisions of sub-section (3) of section 4, the Central Government shall appoint a Narcotics Commissioner and may also appoint such other officers with such designations as it thinks fit for the purposes of this Act.

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(2) The Narcotics Commissioner shall, either by himself or through officers subordinate to him, exercise all powers and perform all functions relating to the superintendence of the cultivation of the opium poppy and production of opium and shall also exercise and perform such other powers and functions as may be entrusted to him by the Central Government.

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(3) The officers appointed under sub-section (1) shall be subject to the general control and direction of the Central Government, or, if so directed by that Government, also of the Board or any other authority or officer.

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¹[9A. Power to control and regulate controlled substances.-- (1) If the Central Government is of the opinion that, having regard to the use of any controlled substance in the production or manufacture of any narcotic drug or psychotropic substance, it is necessary or expedient so to do in the public interest, it may, by order, provide for regulating or prohibiting the production, manufacture, supply and distribution thereof and trade and commerce therein.

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(2) Without prejudice to the generality of the power conferred by sub-section (1), an order made thereunder may provide for regulating by licences, permits or otherwise, the production, manufacture, possession, transport, import inter-State, export inter-State, sale, purchase, consumption, use, storage, distribution, disposal or acquisition of any controlled substance.]

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(1) Subject to the provisions of section 8, the State Government may, by rules--

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(a) permit and regulate--

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(i) the possession, transport, import inter-State, export inter-State, warehousing, sale, purchase, consumption and use of poppy straw ¹[except poppy straw produced from plants from which no juice has been extracted through lancing;]

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(ii) the possession, transport, import inter-State, export inter-State, sale, purchase, consumption and use of opium;

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(iii) the cultivation of any cannabis plant, production, manufacture, possession, transport, import inter-State, export inter-State, sale, purchase, consumption or use of cannabis (excluding charas);

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(iv) the manufacture of medicinal opium or any preparation containing any manufactured drug from materials which the maker is lawfully entitled to possess;

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(v) the possession, transport, purchase, sale, import inter-State, export inter-State, use or consumption of ²[manufactured drugs (other than prepared opium and essential narcotic drugs)] and of coca leaf and any preparation containing any manufactured drug;

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(vi) the manufacture and possession of prepared opium from opium lawfully possessed by an addict registered with the State Government on medical advice for his personal consumption:

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Provided that save in so far as may be expressly provided in the rules made under sub-clauses (iv) and (v), nothing in section 8 shall apply to the import inter-State, export inter-State, transport, possession, purchase, sale, use or consumption of manufactured drugs which are the property and in the possession of the Government:

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Provided further that such drugs as are referred to in the preceding proviso shall not be sold or otherwise delivered to any person who, under the rules made by the State Government under the aforesaid sub-clauses, is not entitled to their possession;

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(b) prescribe any other matter requisite to render effective the control of the State Government over any of the matters specified in clause (a).

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(2) In particular and without prejudice to the generality of the foregoing power, such rules may--

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(a) empower the State Government to declare any place to be a warehouse wherein it shall be the duty of the owners to deposit all such poppy straw as is legally imported inter-State and is intended for export inter-State or export from India; to regulate the safe custody of such poppy straw warehoused and the removal of such poppy straw for sale or export inter-State or export from India; to levy fees for such warehousing and to prescribe the manner in which and the period after which the poppy straw warehoused shall be disposed of in default of payment of fees;

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(b) provide that the limits within which licences may be given for the cultivation of any cannabis plant shall be fixed from time to time by or under the orders of the State Government;

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(c) provide that only the cultivators licenced by the prescribed authority of the State Government shall be authorised to engage in cultivation of any cannabis plant;

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(d) require that all cannabis, the produce of land cultivated with cannabis plant, shall be delivered by the cultivators to the officers of the State Government authorised in this behalf;

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(e) empower the State Government to fix from time to time, the price to be paid to the cultivators for the cannabis delivered;

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(f) prescribe the forms and conditions of licences or permits for the purposes specified in sub-clauses (i) to (vi) of clause (a) of sub-section (1) and the authorities by which such licences or permits may be granted and the fees that may be charged therefor.

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No person shall--

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(a) cultivate any coca plant or gather any portion of coca plant; or

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(b) cultivate the opium poppy or any cannabis plant; or

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(c) produce, manufacture, possess, sell, purchase, transport, warehouse, use, consume, import inter-State, export inter-State, import into India, export from India or tranship any narcotic drug or psychotropic substance, except for medical or scientific purposes and in the manner and to the extent provided by the provisions of this Act or the rules or orders made thereunder and in a case where any such provision, imposes any requirement by way of licence, permit or authorisation also in accordance with the terms and conditions of such licence, permit or authorisation:

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Provided that, and subject to the other provisions of this Act and the rules made thereunder, the prohibition against the cultivation of the cannabis plant for the production of ganja or the production, possession, use, consumption, purchase, sale, transport, warehousing, import inter-State and export inter-State of ganja for any purpose other than medical and scientific purpose shall take effect only from the date which the Central Government may, by notification in the Official Gazette, specify in this behalf:

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¹[Provided further that nothing in this section shall apply to the export of poppy straw for decorative purposes.]

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(1) In respect of any licence fee or other sum of any kind payable to the Central Government or to the State Government under any of the provisions of this Act or of any rule or order made thereunder, the officer of the Central Government or the State Government, as the case may be, who is empowered to require the payment of such sum, may deduct the amount of such sum from any money owing to the person from whom such sum may be recoverable or due or may recover such amount or sum by attachment and sale of the goods belonging to such persons and if the amount of the same is not so recovered, the same may be recovered from the person or from his surety (if any) as if it were an arrears of land revenue.

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(2) When any person, in compliance with any rule made under this Act, gives a bond (other than a bond under section 34 and section 39) for the performance of any act, or for his abstention from any act, such performance or abstention shall be deemed to be a public duty within the meaning of section 74 of the Indian Contract Act, 1872 (9 of 1872); and upon breach of the conditions of such bond by him, the whole sum named therein as the amount to be paid in case of such breach may be recovered from him or from his surety (if any) as if it were an arrears of land revenue.

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In this Act, unless the context otherwise requires,--

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¹[(i) "addict" means a person who has dependence on any narcotic drug or psychotropic substance;]

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(ii) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);

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(iii) "cannabis (hemp)" means--

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(a) charas, that is, the separated resin, in whatever form, whether crude or purified, obtained from the cannabis plant and also includes concentrated preparation and resin known as hashish oil or liquid hashish;

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(b) ganja, that is, the flowering or fruiting tops of the cannabis plant (excluding the seeds and leaves when not accompanied by the tops), by whatever name they may be known or designated; and

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(c) any mixture, with or without any neutral material, of any of the above forms of cannabis or any rink prepared therefrom;

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(iv) "cannabis plant" means any plant of the genus cannabis;

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²[(iva) "Central Government factories" means factories owned by the Central Government or factories owned by any company in which the Central Government holds at least fifty-one per cent. of the paid-up share capital;]

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(v) "coca derivative" means--

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(a) crude cocaine, that is, any extract of coca leaf which can be used, directly or indirectly, for the manufacture of cocaine;

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(b) ecgonine and all the derivatives of ecgonine from which it can be recovered;

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(c) cocaine, that is, methyl ester of benzoyl-ecgonine and its salts; and

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(d) all preparations containing more than 0.1 per cent. of cocaine;

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(vi) "coca leaf" means--

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(a) the leaf of the coca plant except a leaf from which all ecgonine, cocaine and any other ecgonine alkaloids have been removed;

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(b) any mixture thereof with or without any neutral material,

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but does not include any preparation containing not more than 0.1 per cent. of cocaine;

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(vii) "coca plant" means the plant of any species of the genus Frythroxylon;

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³[(viia) "commercial quantity", in relation to narcotic drugs and psychotropic substances, means any quantity greater than the quantity specified by the Central Government by notification in the Official Gazette;

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(viib) "controlled delivery" means the technique of allowing illicit or suspect consignments of narcotic drugs, psychotropic substances, controlled substances or substances substituted for them to pass out of, or through or into the territory of India with the knowledge and under the supervision of an officer empowered in this behalf or duly authorised under section 50A with a view to identifying the persons involved in the commission of an offence under this Act;

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(viic) "corresponding law" means any law corresponding to the provisions of this Act;]

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⁴[⁵[(viid)] "controlled substance" means any substance which the Central Government may, having regard to the available information as to its possible use in the production or manufacture of narcotic drugs or psychotropic substances or to the provisions of any International Convention, by notification in the Official Gazette, declare to be a controlled substance;]

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(viii) "conveyance" means a conveyance of any description whatsoever and includes any aircraft, vehicle or vessel;

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²[(viiia) "essential narcotic drug" means a narcotic drug notified by the Central Government for medical and scientific use;]

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⁴[⁶[(viiib)] "illicit traffic", in relation to narcotic drugs and psychotropic substances, means--

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(i) cultivating any coca plant or gathering any portion of coca plant;

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(ii) cultivating the opium poppy or any cannabis plant;

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(iii) engaging in the production, manufacture, possession, sale, purchase, transportation, warehousing, concealment, use or consumption, import inter-State, export inter-State, import into India, export from India or transhipment, of narcotic drugs or psychotropic substances;

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(iv) dealing in any activities in narcotic drugs or psychotropic substances other than those referred to in sub-clauses (i) to (iii); or

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(v) handling or letting out any premises for the carrying on of any of the activities referred to in sub-clauses (i) to (iv),

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other than those permitted under this Act, or any rule or order made, or any condition of any licence, term or authorisation issued, thereunder, and includes--

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(1) financing, directly or indirectly, any of the aforementioned activities;

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(2) abetting or conspiring in the furtherance of or in support of doing any of the aforementioned activities; and

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(3) harbouring persons engaged in any of the afore-mentioned activities;]

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(ix) "International Convention" means--

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(a) the Single Convention on Narcotic Drugs, 1961 adopted by the United Nations Conference at New York in March, 1961;

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(b) the Protocol, amending the Convention mentioned in sub-clause (a), adopted by the United Nations Conference at Geneva in March, 1972;

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(c) the Convention on Psychotropic Substances, 1971 adopted by the United Nations Conference at Vienna in February, 1971; and

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(d) any other international convention, or protocol or other instrument amending an international convention, relating to narcotic drugs or psychotropic substances which may be ratified or acceded to by India after the commencement of this Act;

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(x) "manufacture", in relation to narcotic drugs or psychotropic substances, includes--

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(1) all processes other than production by which such drugs or substances may be obtained;

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(2) refining of such drugs or substances;

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(3) transformation of such drugs or substances; and

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(4) making of preparation (otherwise than in a pharmacy on prescription) with or containing

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such drugs or substances;

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(xi) "manufactured drug" means--

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(a) all coca derivatives, medicinal cannabis, opium derivatives and poppy straw concentrate;

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(b) any other narcotic substance or preparation which the Central Government may, having regard to the available information as to its nature or to a decision, if any, under any International Convention, by notification in the Official Gazette, declare to be a manufactured drug,

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but does not include any narcotic substance or preparation which the Central Government may, having regard to the available information as to its nature or to a decision, if any, under any International Convention, by notification in the Official Gazette, declare not to be a manufactured drug;

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(xii) "medicinal cannabis", that is, medicinal hemp, means any extract or tincture of cannabis (hemp);

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(xiii) "Narcotics Commissioner" means the Narcotics Commissioner appointed under section 5;

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(xiv) "narcotic drug" means coca leaf, cannabis (hemp), opium, popy straw and includes all manufactured drugs;

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(xv) "opium" means--

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(a) the coagulated juice of the opium poppy; and

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(b) any mixture, with or without any neutral material, of the coagulated juice of the opium poppy,

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but does not include any preparation containing not more than 0.2 per cent. of morphine;

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(xvi) "opium derivative" means--

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(a) medicinal opium, that is, opium which has undergone the processes necessary to adapt it for medicinal use in accordance with the requirements of the Indian Pharmacopoeia or any other pharmacopoeia notified in this behalf by the Central Government, whether in powder form or granulated or otherwise or mixed with neutral materials;

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(b) prepared opium, that is, any product of opium obtained by any series of operations designed to transform opium into an extract suitable for smoking and the dross or other residue remaining after opium is smoked;

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(c) phenanthrene alkaloids, namely, morphine, codeine, thebaine and their salts;

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(d) diacetylmorphine, that is, the alkaloid also known as dia-morphine or heroin and its salts; and

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(e) all preparations containing more than 0.2 per cent. of morphine or containing any diacetylmorphine;

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(xvii) "opium poppy" means--

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(a) the plant of the species Papaver somniferum L; and

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(b) the plant of any other species of Papaver from which opium or any phenanthrene alkaloid can be extracted and which the Central Government may, by notification in the Official Gazette, declare to be opium poppy for the purposes of this Act;

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(xviii) "poppy straw" means all parts (except the seeds) of the opium poppy after harvesting whether in their original form or cut, crushed or powdered and whether or not juice has been extracted therefrom;

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(xix) "poppy straw concentrate" means the material arising when poppy straw has entered into a process for the concentration of its alkaloids;

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(xx) "preparation", in relation to a narcotic drug or psychotropic substance, means any one or more such drugs or substances in dosage form or any solution or mixture, in whatever physical state, containing one or more such drugs or substances;

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(xxi) "Prescribed" means prescribed by rules made under this Act;

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(xxii) "production" means separation of opium, poppy straw, coca leaves or cannabis from the plants from which they are obtained;

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(xxiii) "Psychotropic substance" means any substance, natural or synthetic, or any natural material or any salt or preparation of such substance or material included in the list of psychotropic substances specified in the Schedule;

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⁷[(xxiiia) "small quantity", in relation to narcotic drugs and psychotropic substances, means any quantity lesser than the quantity specified by the Central Government by notification in the Official Gazette;]

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(xxiv) "to import inter-State" means to bring into a State or Union territory in India from another State or Union territory in India;

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(xxv) "to import into India", with its grammatical variations and cognate expressions, means to bring into India from a place outside India and includes the bringing into any port or airport or place in India of a narcotic drug or a psychotropic substance intended to be taken out of India without being removed from the vessel, aircraft, vehicle or any other conveyance in which it is being carried.

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Explanation.--For the purposes of this clause and clause (xxvi), "India" includes the territorial waters of India.

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(xxvi) "to export from India", with its grammatical variations and cognate expressions, means to take out of India to a place outside India;

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(xxvii) "to export inter-State" means to take out of a State or Union territory in India to another State or Union territory in India;

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(xxviii) "to transport" means to take from one place to another within the same State or Union territory;

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⁸[(xxviiia) "use", in relation to narcotic drugs and psychotropic substances, means any kind of use except personal consumption;]

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(xxix) words and expressions used herein and not defined but defined in the Code of Criminal Procedure, 1973 (2 of 1974) have the meanings respectively assigned to them in that Code.

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Explanation.--For the purposes of clauses (v), (vi), (xv) and (xvi) the percentages in the case of liquid preparations shall be calculated on the basis that a preparation containing one per cent. of a substance means a preparation in which one gram of substance, if solid, or one mililitre of substance, if liquid, is contained in every one hundred mililitre of the preparation and so on in proportion for any greater or less percentage:

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Provided that the Central Government may, having regard to the developments in the field of methods of calculating percentages in liquid preparations prescribe, by rules, any other basis which it may deem appropriate for such calculation.

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