  A system of interacting dipoles is of paramount importance for understanding
of many-body physics. The interaction between dipoles is {\it anisotropic} and
{\it long-range}. While the former allows to observe rich effects due to
different geometries of the system, long-range ($1/r^3$) interactions lead to
strong correlations between dipoles and frustration. In effect, interacting
dipoles in a lattice form a paradigmatic system with strong correlations and
exotic properties with possible applications in quantum information
technologies, and as quantum simulators of condensed matter physics, material
science, etc. Notably, such a system is extremely difficult to model due to a
proliferation of interaction induced multi-band excitations for sufficiently
strong dipole-dipole interactions. In this article we develop a consistent
theoretical model of interacting polar molecules in a lattice by applying the
concepts and ideas of ionization theory which allows us to include highly
excited Bloch bands. Additionally, by involving concepts from quantum optics
(population trapping), we show that one can induce frustration and engineer
exotic states, such as Majumdar-Ghosh state, or vector-chiral states in such a
system.
