Recently my fiancee's passport was stolen in Vienna. Unfortunately this is the second time such a thing has happened. When she reapplied for a new passport at the Embassy in Vienna, she was issued a warning saying that she will not be issued another long term passport in the future in case of another loss/theft case. In such a case she will be issued an emergency certificate to enter India.
Indian administrative officials are not known for their politeness. When pressed further, he also told us that next time the Ministry may also deny her another passport.
I know things don't really work like that anywhere (application denials require valid proof). At least in the case of US this is a requirement.
So what are the requirements that need to be fulfilled in India for a valid denial of a new passport request?