Adverse Police Verification report for Passport [Urgent Help]

Context: I have been working in outside India (San Francisco, US) since last 2.75 years. I visit my home in India twice every year. I was issued a Tatkal Passport in August 2012. Recently they did police verification at my home address. My parents told them where I am right now and provided them information they needed. Yesterday, I received this adverse Police verification report from Regional Passport office. ========================================================= Subject: Clarification required regarding issuance of passport facilities to Mr A This is in reference to receipt of an adverse Police Verification report corresponding to your application for Passport issue, with file number X, dated dd/08/2012. You are therefore, called upon to provide a suitable explanation and submit following documents with correct details. 1. Surrender your passport 2. You have not resided at the give address for the period stated. Please furnish correct present address with proof and explanation. Please note that you are required to furnish a proper explanation regarding the circumstances under which you had suppressed the material information in your passport and obtained the above said passport. Also state why action should not be taken to impound the passport under Passport Act, 1967 should not be initiated against you." ======================================================== I am not sure what should be my next steps.