Railways — Penalty for a valid ticket

Dear Sirs,
My wife and 2 children travelled to Thanjavur from Coimbatore on 24.12.2009.
The ticket was booked by me online PNR no. [protected] and it is a confirmed Tatkal ticket.During journey the ticket was verified by a TTE who has not raised any objection on showing the photo copy of my wife's PAN card as ID.
But at the destination Thanjavur a ticket collector has cross verified and did not allow them to go.
He behaved arrogantly and without even considering that the passenger is a woman with kids,he adamantly demanded a fine of Rs.1031/.My wife and kids were left out after being harassed for nearly an hour and paying the penalty.
It is ridiculous to ask for the original ID proof only from passengers holding online booked tickets.The rule has to be amended to accept photocopies or generalise the ID rule for booking at counters also.
How can a valid ticket holder be penalised just for not having original ID proof ?Is it not a violation of customer rights?
While the Railway is promoting reservations through internet,what is the necessity to harass the passengers just by having an ID proof rule?
The TTE at Thanjavur station was not at all human by his rude attitude he has shown to a Lady passenger that too with kids.