Passport Show Cause Notice

Hi, My husband & myself are permanent residents of Australia, recently my husband went to India and got his passport renewed. He applied passport renewal through thatkal, he got his renewed passport within 2 days after his visit to passport office on 05/11. So we thought that we do not need to go to police station for verification process. In the meantime he also had his dental surgery and was on rest. Then after 2 weeks on 23/11 he flew back to Australia, now he has received a show cause notice stating that the police couldn't verify his status on 25/11. Now we have sent an email & registered post with a copy of his all documents (including the receipts from dentist) to passport office. Also asked our family to visit the regional passport office the receptionist told our family that they might impound his passport and he will need to start his passport application from the first. We are very much concerned about this. Could you please explain us what will happen and is it a serious offense? Thank you. Kind regards, PR