Today (7th Feb) morning, we waited for the police till 9:30 or so, then called them up. They said they were not able to come since they did not have a vehicle, so would I please come and get them. Ok, what else can I do? Its my complaint, anyway. So I went and brought them to the milk shop. They did whatever they needed to, looked around, made measurements of the "crime scene", and talked to the wife of the milkshop guy. She was full of bluster and muttering some stuff in Kannada as usual. Next the milkman also came and even in front of the police was threatening me and my wife. Giving us dirty looks, like the usual "dekh loonga" looks. He dropped the name of the Inspector of the Police Station and said lets go to the station right now, he'd see what we would do. He knew politicians, he was a government employee, etc etc. And then started his tirade against us in Kannada, unfortunately we have no clue of what he was saying. We could understand some stuff here and there. He said this was a false complain, a "stunt complain", yada yada yada.
Admirably the police were quite curt with him and told him to shut up and come to the police station when called. They were harsh with him and assured us that they would look into the matter. Then we went to our house (which is just nearby) and they wrote out a long report, and said that they would charge him under some more sections because of the threats he had been making, right in front of them.
Finally, I dropped them back to the police station and we came back home to decide what to do next.
Read Fight for your rights! - Update 3.