cheque dishonoured

Sir, We had given Rs 12,00,000 to a known person for a business rotation of 3 months in cash.promising that he will give it within 3 months and had given his bank cheque leaves 2 with his own handwriting date , amount, sign and bavksidesign with his phone number also for Rs 7,00,000 and Rs 5,00,000 respectively.after 3 months with repeated reminders he just transfered Rs 4,00,0000 to our account and asked for the cheque leaves .then only he will transfer the rest.we stay in different state .so not believing him we had sent a xerox copy of the cheque through mail keeping the originals with us.he never transferred.after that we had produced the cheque of Rs 7,00,000 which got dishonoured.we had sent a legal notice and he had replied that he had not got any money from us.even he stated that we blackmailed him and got the 2 cheques.As we stay in AP and the person stay in tamilnadu we are planning to start the trial in AP.is it possible? Need ur advice.as My husband have annual income of more than Rs 10,00,000 and mydad had given my cash share time.from that only we helped him.is there is a law in outside to get the money back from that person. Pls advice me.