Cheating fraud case

You may think it anyway as to it is cheating or not.

The fact is that you have taken money from him which you have acknowledged, if you are not returning it on demand, the lender will term it as an act of cheating, hence you may better try to solve the matter amicably otherwise he may implicate you in a criminal case.

Did he give the monies to you as loans or did he just give you the monies so that you can use the monies for trading and share the profit with him. In the former case there must be some record like a loan aggreement. In the absence of any record you can claim the latter. The Police has no powers in this case. You should not submit yourself to the Police. This is not a criminal case. You have not absconded with the money. This is a case of neither cheating nor fraud.

Show borrowing record (written, if any) to a local prudent lawyer for appreciation of facts, analyses, advise and necessary proceeding. 

Hello, I did not go to him and ask him for money. He himself came to me saying FD gives very little return and I want you to invest in share market. (This was verbal, nothing is on paper)

I have proof in broker statement that money was solely used for trading and there is net loss of 30L. 10.5 his ( I returned 1.5) and 20L mine.

It's like

if loss = file complaint 

If profit = enjoy

Your friend did not give you money as a loan or as an interest bearing deposit. He passed on to you lakhs of rupees in the hope that you will use them for share trading and earn for him a lot of profit. Unfortunately the trading result in loss. He has to share the loss with you. There are also banks that do this kind of business. But banks are under the control of the Reserve Bank of India and they have to get permission from RBI. There are many brokers who do this business and there are regulations that they have to follow. In your case you may have violated such regulations. But that is neither cheating nor fraud. Police will try to misuse their powers due to your ignorance of law. Police have no powers to act against you. If you have money in your bank account and you want to return any money   give him cheque. But never issue him any cheque if there is no money in your bank account. If you do that what is now only a disputable civil offence will become a criminal offence under Section 138 of the Negotiable Instruments Act. You have been foolish, but now take the advice of a knowledgeable, I mean knowledgeable lawyer who has experience in share market matters.

You also lack  trading experience. When the Ukraine war started the markets the world over fell. But the Indian markets soon bounced back. You should not have panicked, but waited. In 2004 when the NDA lost the elections, the Congress took over with the support of the Communists. One of the Communists made a statement and the markets suddenly fell. I knew that it was a temporary panick and bought shares. I never had to regret.