1. Bail before trial is the rule and jail before trail is the exception. Bail is refused if it is apprehended that a) he may influence the witnesses, b) may destroy the evidence and c) may run away, then his bail is rejected. So, let your lawyer discuss with the PP and the above apprehensions are put before the Court. However, he will be set on bail after charge sheet is filed,
2.Yes, the Court may grant him bail against high amount of bond,
3.Let your Advocate bring this point before the Court while hearing his next bail application. Also lodge a police complaint about it well in advance to protect you,
4.Your advocate and/or the P.P. may seek polygraph test on the culprit but normally it is granted in cases of National importance,
5.Yes, certainly Police can file a charge sheet diluting his involvement stating that it is you who wanted to do business with him but finally lost your money. So, take care about this aspect,
6.There should be an experienced and agile lawyer present to defend your interest in the said case,
7.After charge sheet is filed, he will get bail since after charge sheet, no further interrogation from the accused is required by the Police and keeping him in Jail has no purpose since his offence has not yet been proved,
8.Yes, all the cheated persons should have filed a joint case against him. You should have formed a 'Cheated Persons Forum' and filed he case in that name. Ask all of them to join your case now.