Dear Use of Trademark by Other,
All my legal friends have advised you the most basic fundamental of trademarks but there is more to it.
1) Issue a cease and desist notice first
2) Dont worry about the caveat that your ex-employee might file as the caveat will not be considered during admission phase... not many people who copy and trade file caveats.
3) If your ex-employee stops using your trade name after receiving the cease and desist notice, then well and good otherwise File an injunction suit at High Court (Original Side) in Chennai. As per Section 135 (2) of the Trademark Act, an ex-parte order will be passed against your ex-employee restraining (stopping) him from the use of your trade name (But you have to prove that you have been using the mark.... only registration of trademark wont suffice). Once you file a case for infringement or passing off under Section 29 or 27 (2) of the Act, then the High Court takes immediate cognizance of the same and will hear you ex-parte (that is one sided hearing wherein you have to prove that you are the bonafide owner of the mark by providing proofs like ads in newspapers, magazines, etc., P/L A/c statements of your firm, Bills/Invoices of your firm wherein your trade name is printed etc along with your registration certificate). So within a matter of 7 to 10 days, you will get a order in your favor stopping your ex employee from using the trade name that you rightfully own.
4) If you go to the police as you have already done, then under Section 115 (4) of the Act, the police has to send for Controller's decision as to the similarity of the marks. Further the Inspector doesnt have the power to do it. The minimum rank specified for conduction of a raid as per the Act is DCP/DSP of Police. You have to approach either of them to take cognizance of the infringement committed by your ex-employee. Heavy payments have to be made to the Police to channelize the raid.
5) Last but not the least, trademark cases doesnt take more than four months time unless Advocates delay it. There are Supreme court strictures wherein lower courts have been instructed to dispose off the infringement/passing off cases within four months at the maximum, the last stricture being issued by Supreme Court in Bajaj Vs TVS case
None of the cases I have dealt with either at Mumbai, Delhi or Kolkata High Court have not taken more than 6 to 8 months to dispose off in entirety.