Engagement cancelled,need legal advise

You have no case as you have said that the articles were gifted. The gifted thing is not revocable at the seet will.

Viewing it from another angle, actual original bill of the jewel in token of having purchased the same is a proof of "real purchase by you", but it needs to be proved in the court that the said articles written in the bill were actually passed on to the girl subject to condition that the same will be given back, if the relation does not subsist. It now all depends upon the "principle of morality" with the girl and her family. Try youluck and go into a long drawn judicial battle. But had it been a gift as "admitted by you", I am of the opinion that the gift is never revocable. 

Thanks,I get your point.On the other question,Since we had called off the engagement Can the girl or her family out of anger or greed go ahead and initiate legal proceedings at me ?

It is a contract and it can be terminated, or concluded. I do not think that you will be in danger. Day in and day out, it happens in Indian Society.