1) the case is totally made up (to a truly ridiculous extent), has been so for the six months since it came to existence, and has been handled with complete disregard for truth or any attempt to seek the truth
2) this is indeed very dramatic for the person in question
3) the person in question is completely innocent
4) the people behind this made-up case are closely connected to and influential with the police in Delhi.
And yes, you're right that it does make the Indian police system seem very corrupt. I'd be ashamed of it if I was Indian.