Hello Nathrao,
I think you have mis-read/misunderstood what Budhpal mentioned: '.......she is arrested by police and send to jail........'.
In all probability this means that the employee has been sent to Judicial custody after the FIR has been lodged--so the aspect of 'conviction' doesn't even figure at this point of time. That would come much later--after the Charges are framed by the Police in the Court, the Court hearings/arguments, etc, which would be at least a few years from now.
As HR, the minimum that can & should be done would be to ascertain the facts of the case. A normal enquiry @ the concerned Police Station would give the full facts of the case.
However, given that many [NOT most] of the Dowry-related cases have a very low Conviction rate--as even the Supreme Court has remarked recently--suggest tread carefully while contemplating any action like Termination. What IF the employee is later found to be Not-guilty & then files a case against the Company?
In PSUs, the First step is usually the put the concerned employee under suspension [AFTER getting the relevant paperwork from the PS/Court] & then revoke the suspension once he/she is exonerated by the Court [but the employee would loose the seniority, promotions for the period of absence--to the extent I know]....in case the employee is convicted, then termination follows automatically.
However, any Company action does NOT include HOLDING any payments like Salary, allowances,PF, Gratuity, etc that the employee is due to get--ALL payments will have to be made as per HR policies as the indictment is purely personal in nature & not official.
Rgds,
TS