Police harasment

Hai. My friend was working in a private proprietorship company since 2012 till date. He is looking after the accounts. Recently he was summoned to Delhi for accounts closing. Flight tickets for to and fro arranged by the firm. He stayed there for 3 days. First 2 days everything went right. But on the 3rd day there was some misunderstanding over the figures of the account. He was sprightly brought to Chennai police station by 02 am on 24.03.18. His wife was summoned by the police to rush to police station and relieve his husband before 06 am, other wise he would be put behind bars. In panic his wife rushed to the police station with some close relatives. The police acted as company man and pressured my friends family to come for settlement with the company and take back my friend. The company people told that my friend had cheated them to the tune of 1.5 to 2.0 lacs. His wife or their close relatives gave an undertaking that the issue will be settled mutually with the firm. They requested the firm to arrange for a meeting to proceed further. After 2 days the police again threatened my friends family regarding this matter. Since this matter involves financial matter, her brother along with an auditor went to police station on Tuesday (27.03.18) and discussed with the company people in presence of the police at station. At that time the company people told that the disputed amount goes to the tune of 30 to 40 lacs. So my friends told the company people to arrange for a meeting on Saturday at any other venue (other than police station) for verification of accounts and coming to a compromise. Since no response from the company and continued threats from the police station, they consulted a lawyer. The lawyer stated that compromise would not be possible and decided to attack the problem in a different way. After thorough interaction with my friend the lawyers came to notice that no proper appointment order, salary slip, PF & other statutory provisions etc. except salary payment through bank. So it was decided to file a suit against the firm in the Labour court (Employer – Employee dispute). As per lawyers that this step will immediately stop the police disturbance and bring the firm to the discussion table for smooth settlement of the issue. Notice was served accordingly to the directors of the firm and a Publication in a Tamil daily newspaper was issued. As expected the police threatening over phone is now reduced from 6 to 10 calls per day to occasional call once in 2 days now. At this juncture I wish to know the above way of handling the situation is correct? Can a CSR dated 24.03.18 be valid till date and further FIR & arrest will be proceeded. In that case what we have to do?