My father owned a small restaurant in Chennai, which was closed due to poor business about 10 months ago and 4 months before the shop was closed down, my father partnered up with a cousin of mine who brought in some employees (cooks) for the restaurant. These employees are from my cousin's village (in coimbatore, tamil nadu) and my cousin was the one who recruited them, and brought them over to Chennai. However, my dad was the one who paid the salary to the employees. One employee in particular, worked in our restaurant for ONE month, and one day he quit the job and went to his home town without even informing my dad. The employee did not call, or ask for his salary at all. Two months after this incident, due to poor business, we had to close down the shop. It's been about 10 months now. Today, we received a call from the local police station and the cop informed us that, that particular employee has filed a complaint against us, stating that we owe him TEN MONTHS salary which is a lie. Since the cops know us personally they haven't filed an FIR yet and has asked us to compensate with the employee.. We are ready to pay the employee what we owe, which is ONE month salary but we cannot afford TEN MONTHS salary whatsoever since we now live in a fixed income. So, how do we proceed with proving the false accusation? The employee has no proof of employment, since we didn't provide him any employment letter or salary slip of anything. The employee didn't even call us and ask us the one month salary for the past 10 months since he quit the job. He directly went to the police station and filed a false complaint. We also suspect our cousin could be behind all this. Please advise us on what to do.