Nagaland Police Bans FIRs for Routine Business and Loan Disputes

Kohima: Nagaland Police has issued a statewide directive prohibiting the registration of First Information Reports (FIRs) in cases involving routine civil and commercial disputes. The new guidelines aim to stop the misuse of criminal law for settling personal debt, trade credits, and contractual disagreements.

Police Headquarters issued the circular on June 10, citing Supreme Court directives that distinguish between criminal cheating and ordinary breaches of contract. According to the department, failing to repay a loan or business debt does not constitute a criminal offense unless there is explicit proof of fraud. The circular states, "In such cases, criminal law and police machinery cannot be used as a tool to pressure parties into settling civil claims."

Station House Officers must now personally review all financial complaints. If no clear evidence of criminal intent exists, officers are instructed to perform a preliminary enquiry. If the matter is deemed purely civil, police will reject the FIR and direct the complainant to appropriate legal channels, such as civil courts, consumer forums, or debt recovery tribunals. Officers who violate these instructions face disciplinary action.

The police emphasize that private lending issues are governed by contract law and the Nagaland Money Lenders Act of 2005. While police will continue to investigate genuine cases of fraud or criminal breach of trust, they will no longer act as recovery agents for private financial disputes.

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