fraud

Hi! Thanks for the question! The information provided is too less. There has to be something that can take you and your lawyer towards your case. You will have to gather some evidence so that the court can be convinced. The best bet here is that you have that friend speak something over the phone that may be recorded or have him write an electronic message to you stating about the money that he cheated out of your friends pocket. 

Once you have something, you can take the court's help or else it is nearly impossible to get your money back! Good Luck!

Advise your friend to contact a Criminal Advocate to explore practical ways as immediately as possible instead of wasting further time with advises from friends who may suggest even illegal ways for recovery, complicating the issue.  (Generally friends advise kidnaps and extracting such signatures on documents etc)

send notice for return of loan by oridinary post to entire family and thereafter by registered post.

No  evidence then no case. 

Even if some one files a case s/he can not prove and the case is bound to fail.

Why are you worried about such huge amount alleged fraud committted on your "friend", what is your locus?