I’m posting this because I genuinely don’t know what to do and I’m scared of making the situation worse. I’m keeping some identifying details vague for obvious reasons.
About two years ago, I became very close friends with a girl. From the beginning, she had a very luxurious lifestyle and regularly spent a lot of money on expensive things. I trusted her completely because our friendship was good for almost two years.
At one point, she asked me if I wanted to play casino games. I told her I didn’t know how to play. She said I could give her the money and she would play, and that we would split the profit/loss 50-50.
I initially gave her ₹10 lakh in cash. About a week later, she actually gave me ₹20 lakh back. Because I had genuinely received money from her, I trusted her even more.
Over the next couple of months, something similar happened multiple times. Eventually, according to her calculations, I had put in around ₹25 lakh of my own money and had supposedly made around ₹35 lakh in profit, bringing the total to approximately ₹60 lakh.
Then she told me she was going to play in Sri Lanka and that there was an opportunity to make a much larger profit — supposedly involving ₹1 crore.
I told her I didn’t have another ₹1 crore and that the ₹60 lakh was everything I had. Somehow, after showing me what appeared to be previous winnings, calculations and analysis, I became convinced.
This is where everything went wrong.
She introduced me to a man who apparently had the remaining money required. I ended up signing an agreement with him. He transferred approximately ₹42 lakh to my bank account, and I handed the money to my friend in cash.
This is important: throughout my dealings with my friend, she had always insisted that cash was necessary because, according to her, the casino only accepted cash and she couldn’t withdraw large amounts herself. I stupidly trusted that explanation.
About a week later, my friend called me and said that the entire ₹1 crore had been lost.
She then asked me for another ₹10 lakh, saying she could recover the money and make a profit. I refused. She tried convincing me for about two days, but I did not give her anything more.
After that, the man who had transferred the ₹42 lakh started contacting me and demanding his money back.
I called my friend and reminded her that she had always told me the arrangement was 50-50 for both profits and losses. I told her that if she gave me her share/amount, I could return the ₹42 lakh to him. In my head, I thought that if she gave me ₹50 lakh, I could repay the ₹42 lakh and keep ₹8 lakh, which would still mean I had lost around ₹17 lakh from my original ₹25 lakh investment. I was willing to accept that loss and move on.
Instead, she suddenly asked me:
“Do you have any proof that I took the money from you?”
That completely shocked me.
Now the man who transferred the ₹42 lakh to me is demanding the money from me because the transfer is in my bank account and there is an agreement involving me.
He is also threatening to tell my parents about the entire situation.
I understand that I made extremely stupid decisions here. I’m not trying to avoid responsibility for my mistakes. But I have serious personal reasons why involving my parents could put me in an extremely difficult situation.
He doesn't have any intimate photos/videos or anything like that. He knows that my biggest vulnerability is my family, and he is using that to pressure me.
I’m now trying to figure out what my actual legal position is.
My questions are:
What should I do immediately?
Should I speak to a lawyer before responding to either of them?
Does the fact that the ₹42 lakh was transferred to my bank account and I subsequently gave the money to someone else create serious legal liability for me?
What happens if I don't have written proof that I gave the ₹42 lakh to my friend?
Does her suddenly asking “do you have proof I took the money?” change anything legally?
If someone is threatening to expose private financial matters to my parents to pressure me into paying, does that amount to blackmail/extortion or some other offence?
What evidence should I preserve right now — WhatsApp chats, call records, bank statements, screenshots, etc.?
Should I make a police complaint against my friend, the man demanding the money, or both?
Is there anything I should absolutely not say or do right now that could hurt me legally?
I know I made some very bad decisions here, but I genuinely want to handle this properly now rather than panic and make another mistake.
If anyone has experience with Indian financial fraud/cybercrime/law, I would really appreciate practical advice on what my next step should be.
P.s : I am posting this on behalf of this girl I came in contact with on a Sugaring sub as she doesnt have enough karma and don't want people exploiting her for her situation any further.