Can't cancel passport application made online-even PSK denied

Hi All,

Please suggest me, I have applied though online to reissue of my wife passport by adding spouse name at Hyderabad.
Since, my wife is not having more than 1 year of address proof PSK kept the application on hold.
So, Now I would like to apply at her home town since she is having all type of docs. I have contacted passport customer care and they are saying at first we should cancel the application by personally attending at PSK with some penalty. We went to PSK where we took the appointment.But, there they were saying as they can't cancel the application. I am really in bad situation now. Can you please suggest me the right approach to cancel the application in Hyderabad?
I am doing all this to get a passport for my child.



Thank you in advance!!
Ganesh