Need Assistance to reply a notice from our employee

We are running a startup company in Bangalore had 4 employees and 2 co-founders . we hired three sales and while recruitment we asked them they may need to travel other cities. One of our employee we hired him on 12th – Jan – 2016 and then sent him Hyderabad to take care of sales there we inform every sales by email will pay them travel allowance ( 3000/month) and phone ( 300/month) but for Hyderabad employee we were paying Rs- 4500/month extra as we was put up in Hyderabad we never communicated for any other expenses . unfortunately there was not revenue generated in hydrabad for 4 months so we stopped operation and ask him to resign but did not do that then we terminated him by given 31st -May as last day and 10 days notice period. We are paying him salary till 31 May but he is calming all expenses like accommodation ( 6000/month ) food ( 20000/ month ) , uber and ola travel expenses ( 5000/month ) and all vacation travel expenses . all together he is claiming 120000 and send one notice from his address and there is no authorized stamp of advocate on notice and asking us to pay extra amount which we have never committed . Please suggest what to reply the notice..