False dowry and Defamation case

Respected Sir/Medam, I am Kunal Thakur,I am 35 years old working in govt sector firm. In month of may15 I was engaged with a girl whose family was known to us since long time. One day i was sharing pictures of the engagement ceremony with my friends and suddenly i got to know about very serious affairs and intimate relation of the girl with a boy.I could not believed it.But one day again one of my cousin told me about 2 3 affairs of her.I even met those individuals and got confirm ed.Hardly she talk to me 4 5 times in a period of 3 three months,never found her interested .I Hardly met her 2 times after engagement at her home only.I want to say that we did not even exchanged any feelings. I decided to called off marriage.I talk to my parents and went their home and explaned all this and returned rind.But her father forcely handed me over the ring.After this incident his father started pressurized me and my family.His father very rudely came to my home with 4 persons and gave threat that if you wont marry i will sue you,i.will take your job.i will file dowry case. In the month of Oct, he filed in Pariwar Paramarsh Kendra dowry case.I went there and gave my statement. I am ready to pay for expenses of engagement but his father keep on saying either marry my daughter else i will take your job in dowry case. Sir please tell me what should i do,there 2 relatives gave statement that i have damanded money for marriage. I swear to god that all these allegation are framed just to force me to a girl who had very intimate affairs and i am not ready for it. Marriage was proposed on 5th Dec15. Marriage date has already expired.After that I have gone for PESHI twice. Before a week I got letter from their advocate,they filed defamation case of 1crore and demanded from court that I should not be allowed for marriage until case is closed. Sir I am blank now.I am already 35 year old and already delay for the marriage.My mother got heart attack due to this trauma and she is no more . Other party is not ready for negotiations at all. Sir my advocate is saying like dont worry,things do not matter. But I am tired,I am frustrated and want to come of this matter. Please suggest what should be done from my side and what can be done from advocate point of view. I am not wrong at all.I want to ask whether our system is so weak that anybody with wrong intention can go and file a fraud case ,and nothing can be done for that.I am.looking forward for your reply.