If action is dropped in a criminal case at the FIR stage, it generally should not impact the issuance of a passport. Courts have consistently ruled that a pending FIR, without a chargesheet being filed or the court taking cognizance, is not a sufficient reason to deny a passport.
Filing an FIR (First Information Report) is a preliminary step in a criminal investigation. It doesn't automatically mean someone is guilty or has committed a crime.
Mere pendency of an FIR does not disqualify an individual from obtaining or renewing a passport.
While police verification is part of the passport application process, it's primarily to ensure the accuracy of the applicant's details and check for any criminal history. An FIR that has been dropped should not negatively impact the police verification process.
However you may have to disclose the details of FIR and the action dropped report also in your application for passport.