The Principle here is one short line, and its shortness is the whole test. It makes willful rash driving an offence and stops there. It does not mention alcohol, and it does not mention negligence. In a principle question, whatever the Principle leaves out simply is not part of the law for that question, no matter how strongly common sense pulls the other way.
Now look at what the facts actually give you. They say Mr. Tiwari was driving after drinking. That is all. There is no speeding, no dangerous overtaking, no signal jumping, nothing that shows he took a known risk on the road. Then look at what the police charged him with, willful negligent driving. That charge is not the offence the Principle created. So the police have booked a man for something the Principle does not cover, on facts that do not establish the one thing it does cover. The booking cannot be lawful.
Let's summarize:
The police act is not lawful, so option (A) is correct.