Chapter IV PROHIBITION, CONTROL AND REGULATION

No person shall - (a) possess, sell, stock for sale or trade in any controlled substance; or (b) transport either inter-State or intra-State any controlled substance, without a valid license under the Drugs and Cosmetics Act, 1940 and any other law for the time being in force. Provided that, and subject to the other provisions of the Act and the rules made there under, the possession of small quantities of controlled substances for medicinal purposes with a valid prescription, or for a legal use of the substance, shall be permissible: Provided further that the quantity of controlled substance in possession shall not be beyond the limit prescribed in prescription slip/card, or in cases of other substances other than drugs, the amount permissible shall be proportionate to its purported use:

Subject to the provisions of Section 7, the Government may, by rules- (a) permit and regulate - (i) the possession of controlled substances by authorized persons and licensed dealers; (ii) the sale of controlled substances by the licensed dealers; (iii) the use and consumption of controlled substances in any chemical form; (iv) the manufacture of the controlled substances by the licensed manufacturers; (v) the transport of controlled substances by licensed dealers and authorized persons; (b) prescribe any other matter requisite to render effective the control of Government over any of the matters specified in clause (a).