Reservation confirmed for two seats while only one was there in train?

I was planned to go on my home this summer vacation so i finally decided to book two seats one for me and the other for my wife with 4 small kids..as soon as we reach inside the train the reservation compartment contains only one seat and the other one which was booked at the time of booking was not present inside the train.

The situation became more worse when TTE said to go out of the train you are playing fraud stupid illeterate persons. After a while i gave him 500 ruppes and then he arrange me a berth which was far apart from my wife berth.

This is shit who is responsible. Indian railways or the offical reservation website.