local Police = createTeam("Police", 0, 0, 255)
setTeamFriendlyFire( Police, false )

addEventHandler("onPlayerDamage", root,
function( attacker, attackerweapon, bodypart, loss )
    if ( getPlayerTeam( source ) == Police ) then
        if ( attacker ) and ( loss >= 10 ) then
            local wantedLevel=getPlayerWantedLevel(attacker)
            wantedLevel=wantedLevel+math.floor(loss/10)
            if wantedLevel>6 then wantedLevel=6 end
            setPlayerWantedLevel(attacker,wantedLevel)
        end
    end
end)

addEventHandler("onPlayerWasted", root,
function( _, killer )
    if ( getPlayerTeam( source ) == Police ) then
        if ( killer ) then
            setPlayerWantedLevel(killer, math.max(math.min(getPlayerWantedLevel(killer)+1,6),3))
        end
    end
end)

local function thereAreNoPoliceNearby(player,range)
    local x,y,z=getElementPosition(player)
    local cs=createColSphere(x,y,z,range or 50)
    local playersNearby=getElementsWithinColShape(cs,"player")
    destroyElement(cs)
    for _,otherPlayer in ipairs(playersNearby) do
        if getPlayerTeam(otherPlayer)==Police then
            return false
        end
    end
    return true
end

local function lowerPlayersWantedLevel()
    for _,player in ipairs(getElementsByType("player")) do
        local wantedLevel=getPlayerWantedLevel(player)
        if wantedLevel>0 then
            if thereAreNoPoliceNearby(player) then
                setPlayerWantedLevel(player, wantedLevel-1)
            end
        end
    end
end
setTimer( lowerPlayersWantedLevel, 60*1000*3, 0)

-- take a look here
addEventHandler("onPlayerDamage", root,
function( attacker, attackerweapon, bodypart, loss )
    local policeTeam = getPlayerTeam( attacker )
        if ( policeTeam == Police ) and ( attacker == Police ) then
        if ( wantedLevel > 0 ) then
        if ( attackerweapon == 3 ) and ( loss > 10 ) then
            outputChatBox(getPlayerName(source) .. "was Jailed by" .. getPlayerName( attacker ))
        end
        end
        end
    end
end)