Dear M Banerjee,
This is more than indiscipline. It is plain forgery. I recommend you conducting the domestic enquiry and terminating the employee. However, do not terminate the employee without conducting the domestic enquiry.
Why the letter was issued? What was the purpose? Has the employee left the job already? Ask the employee to submit the original letter to your office. If he does not do it, then you may file a police complaint.
Thanks,
Dinesh V Divekar