I think Police or Law won't help in this case because the person has sent money by his consent and the person who received it did not do anything illegal. It the fault of the person and there is no law which can get him his money back.
Yep, his money is gone. No bank or Law in India can help him. Only the person who he sent his money can help him by deciding to return his money otherwise there is zero probability of him getting his money back.