Salary issue - director of my company decided to deduct 20% salary of an employee

The director of my company decided to deduct 20% salary of an employee but he did not give me anything in writing. And now he is blaming me that I have shown 100% salary of that employee, then I have paid 20% salary from my pocket to that employee. What should I do now. Give me some suggestions.

Dear Anshul,
In private organizations, the atmosphere that prevails while taking ultimate critical decision in any matter is quite informal and the people in the immediate link of the hierarchy have to succumb to the unwritten principle " The boss is always right " and to execute the decision accordingly or quit.
Before finding an appropriate answer to your query, it might be relevant to get an answer to the following query:
When the director has already informed his decision orally, what prevented you from asking him once again whether to reduce the salary of the individual by 20% or not while preparing the salary bill?

The query is silent as to the ground on which the Directed had 'decided' to deduct the salary. Was the employee served any show cause notice? Was it meant to be a punishment or because any loss caused to the company? In the absence of material facts, it would be too hasty to offer any meaningful suggestion.