The kind of alleged damage on your roommate's car is too small for any police service to get involved.
Take magnified and regular photos of both cars where, they said, the spot of impact was as soon as possible (the photos should show the front page of any daily newspaper). Keep the photos in case of future litigation.
Most likely the insurer of the Indian person will not accept the claim for lack of significance and circumstantial evidence. DO NOT provide any insurance information to the Indian guy, just say, "I've never touched your vehicle."
This should be the end of everything. However, if he reported a hit-and-run to his insurer, your insurance company would call you up. Then, show them the photos and say,"He fabricates a story to defraud his insurance company."