You can file a case of extortion against that person as he is demanding money from you and threatening you for the same.
He cannot do this as it is illegal to extort money from someone and also threaten them with dire consequences.
Extortion is the wrongful use of actual or threatened force, violence, or intimidation to gain money or property from an individual or entity.
Extortion generally involves a threat being made to the victim’s person or property, or to their family or friends.
Extortion is based upon some type of threat. The person making the threat must state an intention to commit an injury or harmful action against the victim.
Extortion comes under section 383 of The Indian Penal Code
If a person intentionally puts any person in fear of any injury to that person, or to any other, and thereby dishonestly induces the person so put in fear to deliver to any person any property, or valuable security or anything signed or sealed which may be converted into a valuable security is commiting the act of extortion, as he is demanding money and threatening for the non paymnet of the same.
Under section 384 of The Indian Penal Code there is punishment for commiting extortion, the punishmnet for the same can be jail for a term which may extend to 3 years or fine or it can be both.
Reference: The Indian Penal Code
Section 383 Extortion.ÑWhoever intentionally puts any person in fear of any injury to that person, or to any other, and thereby dishonestly induces the person so put in fear to deliver to any person any property or valuable security, or anything signed or sealed which may be converted into a valuable security, commits ÒextortionÓ.
Section 384 . Punishment for extortion. ÑWhoever commits extortion shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.