Can i be convicted for crime i never did.

I am from west Delhi and aging 60. Unemployed and was looking for a good job as don't have any savings for certain reasons. Replied to an advertisement from the newspaper which said looking for men above the age of 50 for meetings and negotiations etc. high salary around 50 k to 1 L a month. i was told when i called the number that i will have to meet the high end sr. clients for spending quality time as they are alone and for which they will pay good money. he also asked me to deposit an amount of Rs 5000/- in a certain account. I did and when called he said he will arrange meeting. but he never replied. later after couple of unanswered calls he picked up and said there was a problem and i will have to pay once again to which i refused. he was very polite and sounded genuine and said you only pay Rs 2500/- this also i did but the same story again. once again i got into his trap when he said ok deposit only Rs 1200/ and I did. this time he called and said he is arranging a meeting with a lady in gurgaon. They will send the vehicle for the first time and i will have to spend some time with her and for which she will give me handsome money of 20K. whether he mentioned sexual involvement at this time I really don't recall. Perhaps I was happy that i have something in hand and get some handsome money and will develop some good contacts for future. He also mentioned that I will have to visit their office after the meeting and they will provide me a laptop as this info in very secret. I agreed for a time slot of pick up which never happen..I kept calling but no reply. then I left a message that please tell me clearly so that i do not call. After that 10 days later he called back and asked to put in some more money to which i politely refused and said i do not wish to do this and let us forget the whole deal. I forget the money lost. To my surprise I got a call from someone saying that he is SI from Delhi police and wanted to meet me in this connection. I met him and said that i have made a big crime by giving consent to such deal where there is sexual involvement. I said i really don' t remember but he said they have recording of my calls where i have given consent to such sexual involvement and i need to go with him to the police station and will involve minimum of six months jail. after too much of threats that my family will be humiliated and break all relations with me if they come to know and i will be cut of from the society etc. fearing all this i requested him to suggest the way to get out of this. he demanded 3 lakh rupees to which i have so far agreed to give Rs 50 k in next four to five days and bal in next 10 days whereas honestly speaking i do not have any such kind of money. if i had savings then i would not be lured to such things at all. NOW , after giving a peaceful thought to the entire episode I feel that I am being blackmailed. I feel that he is not an police officer. I might have contacted and agreed to the proposal of the other person for even sexual meeting but i never met anyone. Then if they have record of my calling why are they contacting me after 15 days. I even see such advertisement in the newspaper today. I am really worried and really do not know what to do. Should i report this to crime cell or just manage to pay. My fear is even if i pay( which is a very difficult task ) for me, what is the guarantee that he will not demand in future. If i fail to pay then i will have no option but to commit suicide. Please help.