regarding 420

sir my mother and her frnd had family like relations frm past ten years ..my mother frnds regularly used to borrow some money frm my mother...she used to put some kinds of jwellery as a morphage..last year she borrowed 1.5 lakh and given some jwellery as a girwi..bt in june she cleared al th dues and taken back her jwellery she put it fr girwi...bt due to some family dispute she started querreling about interest she had given in past...aftr tht she again came to my home and said sorry to my mother ..bt on tht particular day she stolen the paper of 1.5 lakh giving ..(which she earlirr cleeard it and taken back her jewels)bt now she registered complain of 420 fr nt returning of jwellery...and due to this police and existing political party asking us to do mediation or samjhota ...nw she is asking fr huge money of 1.5 lakh ...wht should i do?? my mother doesnt hav any licence ..