Small accident - no injuries

Hi, There was a small bike accident that happened in a highway and there was a car on the other side which put a right indicator. The bike in front of me applied sudden brakes and i had to do the same. Unfortunately the side of my bike fairing touched his silencer. But the person in the bike just lost balance out of no where and fell. Nothing went wrong with him. No harm to him. However his bike got few very minor scratches on the doom/Wind Shield. So we stopped and tried to help the person. Asked how he was and if anything happened in a polite manner. However the guy was furious and started raising the matter, he started calling locals and making a fuss. The repair would hardly cost around 100 or 200Rs even if we replaced that small doom in the front. But the person demanded for 1500Rs. And we said it was not a reasonable amount as we could figure out he was trying to make money out of it. He did not agree and happened to call the police and then the police asked to go the the traffic police station. We went there and he had filed a FIR for it. After that i have been at the police station to give my documents since i was not aware of anything and they were asking me to do things. My bike was seized on the same accident day and since i am working usually when they are open, its difficult for me as well. Now they have asked me to submit my aadhar card which i have and also asked to call a friend with his proof as well as a Sureity or bailer. They said now i have to get a stamp paper, submit photos of the vehicle, and they will follow the arrest procedure and get a bail at the same time. Is this going to affect anything? Is there any other way this can be resolved?