The state said no one was injured by the AK-47 firing near JP Chowk and maintained that weapon was used when police force deployed was unable to control the situation.
While the constable who fired the AK-47 has already been suspended, officers who were in charge of Siwan when the incident occurred have not yet been given fresh postings.
No one was injured by the bullets fired from the rifle, the Bharatiya Janata Party-led government said in an affidavit.
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