Character Defamation by an elderly lady of an army officer

Hello Team, I am Sameer staying on rent in hadapsar Pune in an Army society. My owner is in army and he has rented out his flat to us. I am working as a software professional. In the evening i am playing with the children of the society (also my daughter) in the society park. i have been doing this from last 3 years, and almost 25-30 children play with me. I dont charge them for this, and this is just a mode of keeping myself and my child busy. nOne fine day, there was an arguement with one of the resident of the society (due to issue related with stray dogs coming to the Park). During this argument, the lady told me that i see how you touch the girls while playing with them. she directly defamed my character, and parents to few children playing with me also witnessed the same, and argued with that lady.Please help me answer below questions1. Isnt that lady defaming my character and putting a blame of child molestation on me?n2. Can i file a case against this?