ORDER : Sunil Ambwani, J. 1. We have heard learned counsel appearing for the parties. 2. The State of Rajasthan has filed a reply stating therein that the licenses were given for sale of Lanced Poppy Heads (LPH) under the Rajasthan Narcotic Drugs and Psychotropic Substances Rules, 1985. Rule 33 provides for issuing license. Rule 34(1) provides for sale of Lanced Poppy Heads required by Rule 32 in two classes, namely, license in Form NDPSL-7 for the wholesale vend of Lanced Poppy Heads; and (b) license in Form NDPSL-8 for the retail vend for Lanced Poppy Heads. Sub-rule (2) provides that the number of license for sale of Lanced Poppy Heads by wholesale or retail shall be fixed from time to time for each area by the Commissioner of Excise and shall be disposed of by auction by the District Excise Officer or tender by the Commissioner of Excise in accordance with the procedure prescribed for auction/tender of country liquor licenses in Chapter VII of the Rajasthan Excise Rules, 1956. The license under Rule 35 has to be issued for a period of one year not exceeding beyond the 31st March of the next year. Rule 36 provides for revocation of license. Rule 38 provides for the excise duty on Lanced Poppy Heads, which at present is Rs.35 per kg. 3. It is submitted by Shri Rajendra Prasad, Additional Advocate General and Shri R.B.Mathur for the State Excise Department that Rule 44 provides for medical exemption. A permit is to be issued in accordance with the provisions of Rule 44. Under Rule 45, the Medical Officer examines the applicant on his application and under sub-rule (iii), the Medical Officer after examining the applicant and after taking into consideration the provisions of the Rules, records his opinion clearly and explicitly in Form 'I' as to whether the applicant is required to use Lanced Poppy Heads as a medical necessity. Such a license shall only be granted to addicts who would suffer from irreparable damage from the withdrawals of the Lanced Poppy Heads if these are not made available to them. Such a license shall only be granted to addicts who would suffer from irreparable damage from the withdrawals of the Lanced Poppy Heads if these are not made available to them. The sale by the retailer under a license is only to a person holding a permit in Form-'I' issued by the Medical Board or Medical Officer, as the case may be in the manner provided in Rule 45, provided he is more than 21 years old and does not hold a similar permit or registration card for opium immediately prior to the date of application in any part of India. No permit shall be granted to a person who so applied for a permit alongwith Medical Certificate after 60 days. 4. It is submitted that the number of addicts from the year 2004-05 to 2015-16 have been reduced from 27,516 to 19,296 in the State of Rajasthan and for which the requirement of Lanced Poppy Heads has been reduced from 30,532.2 qunitals to 16,937.5 quintals. The Lanced Poppy Heads may be purchased by wholesaler from the cultivator at the rate of Rs.125/- per kg. and which can be sold at a fixed price of Rs.500/- per kg. 5. It is submitted that the State of Rajasthan is committed for reduction of the sale of LPH and for which extensive awareness camps and programmes by the name of “Naya Savera” are being carried out by the State Government. There is extensive coverage in Media and Television in which the State Government has sanctioned more than Rs.8 crores for the de-addiction programme. 6. Shri Rajendra Prasad, learned Additional Advocate General further submits that considering the number of addicts, which had come down from 27,516 in the year 2004-05 to 22,473 in the year 2013-14, the State Government made a request to the Central Government to relax the conditions of stopping the sale of Lanced Poppy Heads by 31st March, 2020. 6. Shri Rajendra Prasad, learned Additional Advocate General further submits that considering the number of addicts, which had come down from 27,516 in the year 2004-05 to 22,473 in the year 2013-14, the State Government made a request to the Central Government to relax the conditions of stopping the sale of Lanced Poppy Heads by 31st March, 2020. The letter of Shri Rajiv Mehrishi, the then Chief Secretary, Government of Rajasthan to the Secretary, Department of Revenue, Ministry of Finance, Government of India, New Delhi dated 6th June, 2014 is quoted as below:- “Government of India has adopted a policy and has issued directives to State Governments that no poppy straw will be harvested in the opium fields after financial year 2014-15 and that there no supply of poppy straw (LPH) would be made to the poppy addicts after 31.3.2015. Rajasthan has a very large number of medical permit holders poppy addicts despite the State Government not issuing any new permits since 2004-05. The number of addicts which was 27,516 in 2004-05 has now come down to 22,473 in 2013-14. Yet, this number along with unregistered poppy addicts form a very significant large part of the population, especially in the Western parts of the State. The State Government has been undertaking de-addiction programme and is committed to further intensify the de-addiction programme during the remaining part of the current financial year. However, a very large number of poppy addicts are likely to remain un-de-addicted by the time 31.3.2015 deadline arrives. In Rajasthan, opium is cultivated by pattas holder mainly in four districts viz. Chittorgarh, Pratapgarh, Baran and Jhalawar. 27,322 farmers were involved in opium cultivation in 2011, spread over 10,108 hectares in 979 villages of the above four districts. While the cultivation area was drastically reduced to 2641.76 hectares in 2014-15, year 20,465 farmers remained engaged in this cultivation. The estimated total income to the opium farmers from sale of poppy straw in the State during 2012-13 was around Rs.40 crores. We are also sensitive to the loss of income of the opium farmers in the State and had earlier requested the Government of India for suitably compensating the affected farmers for the loss of their income. Non-availability of poppy straw to a large number of poppy addicts in the State will create enormous human problem which may also become law and order situation in several parts of the State. Non-availability of poppy straw to a large number of poppy addicts in the State will create enormous human problem which may also become law and order situation in several parts of the State. De-addiction programme for the remaining addicts is likely to take 3 to 5 years' time. The State Government would, in the circumstances, urge the Central Government to extend the deadline for harvesting the poppy straw by the opium farmers upto 31.3.2020. We will undertake programme for de-addiction to reduce the poppy addicts atleast by 20% every year which can be accompanied by reducing the area under opium/poppy straw cultivation proportionally. I would like to request that the Government of India to consider this major human problem sympathetically and be considerate enough to allow cultivation/harvesting of poppy straw till 31.3.20020 with the State Government assuring to bring down the number of addicts by 20% every year.” 7. It is submitted by Shri R.B.Mathur that the entire sale of Lanced Poppy Heads is controlled and regulated under the Rules, which provide for purchase by wholesaler and its transportation from farmer to the bonded warehouse from where to the dealer in accordance with the fixed quantity. The State Government has not committed any irregularity in issuing the policy for the year 2015-16, which is under challenge and for giving licenses for sale in the year 2015-16. It is submitted that no auctions were held for the year 2015-16, as under the orders of the Central Government issued under section 74A of the NDPS Act, 1985, the sale was to come to an end on 31st March, 2016. The licenses issued in the year 2014-15 were renewed on the same terms and conditions for a total amount of Rs.88 crores. 8. Mr.Rajendra Prasad, learned Additional Advocate General submits that the State Government is committed to its programmes for de-addiction and that considering the law and order problem and the possible damage to the health of the addicts in case of withdrawal of LPH, the quantities are being reduced gradually. 9. Learned Additional Advocate General submits that in compliance to the orders passed by this Court, deliberations were made in which details were worked out for sale of LPH to permit holders, at the hands of Government Hospitals and Dispensaries. The modalities have also been worked out in the meeting, for which necessary directions are to be issued. 9. Learned Additional Advocate General submits that in compliance to the orders passed by this Court, deliberations were made in which details were worked out for sale of LPH to permit holders, at the hands of Government Hospitals and Dispensaries. The modalities have also been worked out in the meeting, for which necessary directions are to be issued. He submits that on 12th August, 2015 i.e. yesterday, an order has been issued by the State Government, Finance (Excise) Department, Jaipur, by which in compliance of the directions of this Court, the licenses for sale of LPH have been kept in abeyance. He prays for some reasonable time to provide an alternative mechanism. 10. Shri A.K.Sharma, learned Senior Counsel appearing for the licensees has filed an impleadment application, and an application for vacation of interim order. It is submitted that the licensees were not impleaded as party respondent to the writ petition. They have invested a substantial amount in the business and have also given guarantees. Their entire business, which is strictly in accordance with the Rules, has been stopped causing irreparable loss to them. It is submitted by him that the licensees are necessary parties to the writ petition filed in public interest. He has also challenged the locus standi of the petitioner, a resident of Chandigarh, in filing the writ petition and requested to ask the petitioner about his credentials and the steps taken by him for reducing addiction in the State of Punjab. 11. We have gone through the reply filed by the State of Rajasthan. 12. Learned Counsel for the Union of India had given consent in making the interim order on 30th June, 2015. The State of Rajasthan also does not object to the order except that it wants a reasonable time to provide a mechanism in substitution of the statutory rules. 13. Section 8 of the NDPS Act, 1985 provides for prohibition of certain operations and it excludes production, manufacture, possession, sell, purchase, transport, warehouse, use, consume, import inter-State, export inter-State, import into India, export from India or tranship any narcotic drugs or psychotropic substance, under sub-section (c) except for medical or scientific purposes and in the manner and to the extent provided by the provisions of the Act and the rules or orders made thereunder. Section 9 provides for the power of the Central Government to permit, control and regulate by making Rules, subject to the provisions of Section 8, the cultivation, production, manufacture and sale of opium and opium derivatives. Section 10 gives power to the State Government to permit, control and regulate by making Rules, subject to the provisions of Section 8, the possession, transport, import inter-State, export inter-State, warehousing, sale, purchase, consumption and use of poppy straw, under sub-section (1)(a)(i).The Rajasthan Narcotic Drugs and Psychotropic Substances Rules, 1985 have been made in exercise of the powers conferred under section 10(1)(a)(i) of the NDPS Act, 1985. Section 74A gives power to the Central Government to issue directions to the State Government to be complied by it. 14. As observed by us in the order dated 30.6.2015, the Central Government had constituted an Expert Committee under section 6 of the NDPS Act, 1985. The Expert Committee was of the view that the provision of poppy straw to addicts was not a medical necessity. The letter of the Government of India dated 30th November, 2009 containing the observations and conclusions of the Committee regarding use of Lanced Poppy Heads by the addicts considering its consumption is quoted as below:- “F.No.616/01/2003-NC-1 Government of India Ministry of Finance Department of Revenue New Delhi 30th November, 2009 (ORDER 1 UNDER SECTION 74A OF NDPS ACT,1985) Sub: Directions to the State Governments under Section 74A of the Narcotic Drugs and psychotropic Substances Act, 1985- Licensing and permitting the possession, transport, import inter-state, export inter-state, warehousing sale, purchase, consumption and use of poppy straw-reg: The undersigned is directed to say that Section 4 of the NDPS Act, 1985 requires the Central Government to take measures to prevent and combat abuse of and illicit traffic in narcotic drugs and psychotropic substances. Section 74A ibid, empowers the Central Government to give directions to the State Governments and mandates that the State Governments shall comply with such directions. 2. Section 10 (1) (a) (i) of the NDPS Act empowers the State Government to subject to the provisions of Section 8, by rules, permit and regulate possession, transport, import inter-state, export inter-state, warehousing, sale, purchase, consumption and use of poppy straw. 2. Section 10 (1) (a) (i) of the NDPS Act empowers the State Government to subject to the provisions of Section 8, by rules, permit and regulate possession, transport, import inter-state, export inter-state, warehousing, sale, purchase, consumption and use of poppy straw. Section 8, inter-alia, mandates that no person shall produce, manufacture, possess, sell, purchase, transport, warehouse, use, consume, import inter-state, export inter-state, import into india, export from India or transship, any narcotic drug or psychotropic substance except for medicinal 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. Thus, the powers of the State Governments to permit and regulate various activities with respect to poppy straw (under Section 10) are subject to the restriction under Section 8 of 'use only for medical and scientific purposes'. 3. An expert committee comprising the Drugs Controller General of India, the Narcotics Commissioner, doctors from the All India Institute of Medical Sciences, Delhi, Post Graduate Institute of Medical Education and Research, Chandigarh, Ram Manohar Lohia Hospital, Delhi, representatives of the States of UP, MP, Rajasthan and Punjab had been constituted to examine whether providing poppy straw to addicts can be regarded as a medical use in terms Section 8 of the NDPS Act. The Committee was also required to examine any other consequential issues. 4. The Expert Committee concluded that the provision of poppy straw to addicts was not a medical necessity. It also indicated that the levels of use of poppy straw noticed can hardly be regarded as compulsive, denial of which would cause acute withdrawal symptoms causing irreparable damages to the patient. Further, it found that 5 to 8 kg of poppy straw per month was being supplied to addicts in MP and Rajasthan and such a large dosages is likely to lead to spread of addiction. It further found that medical use pre-supposes a prescription by an authorized medical authority in which deosage and frequency are clearly prescribed and found that the manner and use of poppy straw in States was not under medical supervision. 5. Comments of the State Governments of the States where poppy straw is produced or consumed as well as of the Narcotics Control Bureau were called for on the Report of the Expert Committee. 5. Comments of the State Governments of the States where poppy straw is produced or consumed as well as of the Narcotics Control Bureau were called for on the Report of the Expert Committee. After considering the comments that were received from the States and from NCB, the following order is being issued. 6. In exercise of the powers conferred on it under Section 74A of the NDPS Act, 1985, the Central Government, hereby, gives the following directions to the State Governments of Andhra Pradesh, Delhi, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Meghalaya, Nagaland, Orissa, Punjab, Rajasthan, Tripura, Uttar Pradesh and West Bengal, (which license/permit activities related to poppy straw): (a) A nodal officer should be designated to deal with all matters pertaining to poppy straw. (b) All existing addicts of poppy straw may be registered for proper medical care. (c) On the basis of the registrations and the quantities declared by the addicts and after consulting medical and other experts, the nodal officer shall determine the total quantity of poppy straw required for each addict and the entire State. (d) The quantity of poppy straw to be provided to the addicts should be progressively reduced so as to ensure that after a certain period of time, there are no addicts requiring poppy straw. (e) Stringent conditions should be imposed for supply of poppy straw to addicts so as to ensure that they are in accordance with NDPS Act/Rules framed thereunder. (f) Poppy straw should be allowed to be purchased only from licitly cultivated crops. (g) The licenses issued for purchase and sale of poppy straw, etc. shall specify the quantity that can be purchased or sold. (h) The total quantity of poppy straw licensed to be purchased and sold in any district shall not exceed the total requirement of poppy straw of drug addicts and any scientific requirement of poppy straw in the district. (i) All poppy straw which remains unutilised shall be destroyed and a certificate to the effect and an annual report for every calander year as at ANNEX to this order shall be sent by the nodal officer of the State to the Narcotics Commissioner, 19. The Mall Morar, Gwalior (M.P.)-474006 (Fax:0751-2368111) by June of the following year. 7. (i) All poppy straw which remains unutilised shall be destroyed and a certificate to the effect and an annual report for every calander year as at ANNEX to this order shall be sent by the nodal officer of the State to the Narcotics Commissioner, 19. The Mall Morar, Gwalior (M.P.)-474006 (Fax:0751-2368111) by June of the following year. 7. The States of Rajasthan, Madhya Pradesh and Uttar Pradesh shall adopt strict checks and measures to prevent smuggling of poppy straw, opium and other Narcotic Drugs to the neighbouring States. 8. The States other than those mentioned in para 6 of this order and the Union Territories shall not license or permit activities related to poppy straw.” 15. Based on the report of the Expert Committee comprising of the Drugs Controller General of India, the Narcotics Commissioner, doctors from the All India Institute of Medical Sciences, Delhi, Post Graduate Institute of Medical Education and Research, Chandigarh, Ram Manohar Lohia Hospital, Delhi, representatives of the States of UP, MP, Rajasthan and Punjab, the Central Government directed to reduce the quantity of poppy straw to be provided to the addicts, and to bring its supply to the addicts to an end by 31st March, 2015. 16. The Central Government issued directions under section 74A of the NDPS Act, 1985 on 30.11.2009 and 7.3.2012 and by the directions dated 19.2.2015, in which fixed the date as 31st March, 2015, after which no addict will be supplied poppy straw. This was based on the opinion of the Expert Committee that the supply of Lanced Poppy Heads to the addicts is not a medical necessity. 17. The State of Rajasthan by the letter of the Chief Secretary, as quoted above, requested the Central Government to extend the date upto 31st March, 2020. The object for extending the time was not only the period taken for progressively reducing the supply to the addicts, but also the cost of Rs.40 crores to be paid to the opium farmers and to prevent law and order situation. We may observe that the State Government was also concerned with the financial gains in collecting license fees to the extent of Rs.88 crores per year, which could have further increased. However, the Central Government did not agree and extended the period only upto 31st March, 2016. 18. By the interim order, we have not stopped the sale of Lanced Poppy Heads. However, the Central Government did not agree and extended the period only upto 31st March, 2016. 18. By the interim order, we have not stopped the sale of Lanced Poppy Heads. We have only directed that the sale should be made through the Government under the direct medical supervision of the Government doctors from the Government Hospitals, Community Health Centres and Dispensaries. The object of passing of the interim order was to stop the supply of the LPH through private individuals, who are either the wholesaler or retailer under the license and act only for their commercial interest. 19. Learned counsel for the petitioner has provided us further material to support the averment that a large amount of LPH is available in the market, causing serious health hazard for the citizens of the State and neighboring States. It is smuggled in large quantities to the State of Punjab and other neighbouring States. It is submitted that there is no control over the production of LPH by the opium farmers. Sufficient quantity of LPH is available with the farmers in the season upto July of the year. Unlike poppy seeds, the quantity of LPH is not regulated and that instead of ploughing the LPH back into the field, it is sold in the open market without any regulation. The Rules do not appear to have sufficient teeth, inasmuch as, a large quantity available to the grower, is freely available in the market either by illicit trade or through wholesaler or retailer under license and this fact is proved by the number of licenses issued to the group, which had made bids as a consortium for trade in poppy straw. 20. It is submitted that the State of Rajasthan has renewed licenses for sale of LPH for the year 2015-2016. From these details provided in the reply filed by the State of Rajasthan, we are amazed to find that in the Jaipur City, there are 5 licensed dealers for only 45 addicts. The shops are situated at Sanjay Bazar, Railway Station, B.K.I.Road No.14, Transport Nagar, Narsinghpura, which are the busy commercial centres in Jaipur. Similarly, for 235 addicts in Alwar, there are 7 shops; for 607 addicts in Sikar, there are 13 shops; and that in Jaipur zone alone, there are 55 shops for only 1867 addicts. The shops are situated at Sanjay Bazar, Railway Station, B.K.I.Road No.14, Transport Nagar, Narsinghpura, which are the busy commercial centres in Jaipur. Similarly, for 235 addicts in Alwar, there are 7 shops; for 607 addicts in Sikar, there are 13 shops; and that in Jaipur zone alone, there are 55 shops for only 1867 addicts. The number of licensed shops are highly disproportionate to the number of addicts clearly suggesting the illegal sale of poppy straw in the State of Rajasthan. 21. The petitioner has also worked out the purchase price of LPH at Rs.125/- per kg. and MRP at Rs.500/-; the cost of 16937.5 quintals of poppy straw for maintaining 19296 addicts at Rs.88 crores. If the cost of purchase at Rs.125/- per kg. and excise duty at Rs.35/- per kg. is reduced, the total sale consideration in hand with licensees for sale without excluding the incidental expenses will be only 58 crores, whereas the licensed dealers have got their licenses renewed on payment of renewals fees of Rs.88 crores. This apparent loss, which does not admit any doubt, clearly establishes that a large quantity of LPH in the hands of wholesaler supplied to retailer is available for sale in the open market and this is in addition to the illicit trade, which goes on without any control over the LPH in the hands of farmers. 22. In Khoday Distilleries Ltd. and ors. V/s State of Karnataka and ors. ( (1995) 1 SCC 574 ), the Constitution Bench of the Supreme Court reiterated the law relating to trade and business in liquor. It was held relying on the judgment in State of Bombay V/s F.N. Balsara ( AIR 1951 SC 318 ) consistently followed in various other judgments, that no person has a fundamental right to trade or business in liquor as a beverage. The LPH is a narcotic and thus the licensed dealers cannot claim any violation of the right to trade. 23. The dealers, therefore, in our opinion, cannot insist that they are entitled to sale Lanced Poppy Heads as a matter of fundamental right under the license. 24. We are informed that the Chief Minister of Punjab has issued a press statement that they will be applying for similar interim orders as passed by the Rajasthan High Court to the MP High Court, to stop the smuggling of LPH into Punjab and drug addiction in Punjab. 24. We are informed that the Chief Minister of Punjab has issued a press statement that they will be applying for similar interim orders as passed by the Rajasthan High Court to the MP High Court, to stop the smuggling of LPH into Punjab and drug addiction in Punjab. The statement clearly demonstrates that a large quantity of LPH is transported illegally to the State of Punjab where there is a complete ban on sale of opium and LPH. 25. Having regard to the facts and circumstances stated above, we are of the view that since the interim order was passed by this Court protecting the rights of the addicts and encouraging gradual reduction of consumption of LPH, it is absolutely necessary that the policy of the State Government for licensing of sale of LPH, which is in operation upto 31st March, 2016 must be put in abeyance. The sale of Lanced Poppy Heads will be made as directed by us only through the Government under the direct medical supervision of the Government doctors from Government Hospitals, Community Health Centres and Dispensaries, which will ensure the sale only to addicts in the quantities required by them. 26. We make it clear that we have passed the interim order in the large public interest to save the people of the State of Rajasthan from falling into the addiction. There are several reports in the newspapers of which we take notice that a large number of population in the State of Rajasthan is addicted to intoxication of opium contents in LPH, which is much cheaper and equally addictive as opium. Large quantities of LPH are available in the market in the State of Rajasthan, where it is customary in many part to offer opium and water boiled with LPH, in marriages, parties and family functions. 27. Considering the facts and circumstances of the case, the licensed dealers are impleaded as party respondents to the writ petition. The impleadment application is allowed. The interim order dated 30.6.2015 is confirmed. On the request of learned counsel for the licensed dealers, we allow him four weeks time to file reply. 28. List the matter for final hearing on 22nd September, 2015.