Landlord asking for rs. 1 lakh as compensation.

My father entered into this agreement of renting the house with landlord in december 2011 i.e. a 11 months agreement. After 11 months we asked the landlord to renew the agreement in ny sisters name..He took necessary documents from us but never showed up with the renewed agreement. In 2013 my father passed away. We informed this to the owner and also told him that we will be vacating his house and will be shifting to another house with a lower rent. He himself asked us to continue living in his house without an agreement and also lowered the rent from rs. 14000 to rs.12000. After 6-7 months he again asked us to start paying the original rent i.e. rs. 14000. Now we informed him over phone that we will be vacating his house in a month since we are shifting to other city. He came today,inspected the entire house and told that the tiles look dirty than what it looked 4 years ago. We are ready to arrange the cleaning at our cost before vacating the house. But he is demanding Rs. 1 lakh as compensation as he wants to do entire tiles flooring again. He also said he wont be giving us the gate pass for leaving the society till he does not get the compensation. What should we do?