Section 37E(3) in The Narcotic Drugs and Psychotropic Substances (Madhya Pradesh) Rules, 1985
(3)No licence shall be granted to a person who-(i)is not a citizen of India;(ii)is below 21 years of age;(iii)is in the opinion of the licensing authority of bad character;(iv)is of unsound mind and stands as so declared by a competent Court;(v)is an applicant to be adjudged an insolvent or is an undischarged insolvent;(vi)has been convicted by a Court of law for any criminal offence involving moral turpitude; or(vii)is black listed by the State Excise Department.