Electricity board imposed penalty on us even after paying bills

Hi , Recently there was an inspection done by one the reps from the electricity board , when he checked our meter , he said one of the phases of our meter is not working , so basically he meant we were not paying the whole amount since the last time my meter got replaced or checked that is around five years , now he is saying that we have to pay around 1,00,000 as penalty since it is our fault plus if we dont pay he will discontinue our power supply . Although he said if we give him 20000 he will make it all go away. Please tell me what to do ?