It happened to a friend of mine too. Unfortunately, the solution was him reaching out to the IAS of the city and suddenly the policeman worked without any issues. If you know anyone, right now would be a good time to call out a favor. It isn't like you are doing something wrong, but with an irresponsible public servant, you need to be extra cautious.
I swear PCC was the last time I'll ever be asked for a bribe in India. I've shared this in numerous other threads on how poor the PCC process really is:
https://www.canadavisa.com/canada-immigration-discussion-board/threads/pcc-india-living-in-uae.795034/#post-10441317
If you have a female partner, let her deal with police. Police can't argue with a female member or question them rudely, they know how easy it is to lose their jobs if there's a complaint. The thing that you can do to better help your application is to read clauses tied to PCC verification and tell the (politely) police when they argue. I'd honestly skip the entire thing, ask them to cut the bullshit (politely) and demand the amount. If the ask for INR 100, give them INR 500. Good riddance and fuck off to this shitty tradition of exploiting people.
I realize that I'm getting salty, but I absolutely hate shit-eating, bribe-demanding public employees in India. I knew my PCC would follow the bribe+arrogance route too, so I had my friend's IAS officer drop a note to the police station in advance. When they called me, I went there, they offered me tea and I came back. They did however asked me for "whatever I will pay to them happily"! Fuck them!