How to recover money lent to friends without any proof ?

Dear Sir, I am from Mumbai, Maharashtra. My father has given a Rs. 3 Lakh to one of the local Political activist in year 2010 as he said that he will give us a property against that money under rehabilitation scheme for slum people. We have paid Rs. 2 Lakh by Cash and Rs. 1 Lakh by Chaque. But still 2015 he has not given us the property, so we have asked our money back. He has given us Rs. 1 Lakh by Chaque on 2010 and told us he will give remaining money after few days. Even though coordinating with him, he is not giving remaining Rs. 2 lakh to us till date. We have not done any paper work while giving money to him. Also, While giving money to him, My brother and my father was present over there. Can you please advise me what are the legal options available with us?? shall we file police complaint against him? how to recover money without proof ? Awaiting for your valuable advise. Thanks, Regards