Borewell Drilling Scam in our Apartment

Dear all, I stay in an apartment in Bangalore and we have formed association to take care of apartment common areas and registered under societies act. We had water problem in 2012 and all members decided to drill a new borewell and collected Rs 5,000.00 from each flats. We have one member who owns 32 flats in our building. He has not paid the contribution from his flats and one day he himself got the borewell drilling company and completed the work without intimating association. When association asked for bills and receipts he didnt produce. From next year onwards, he given a letter stating he spent Rs 3,60,000.00 for borewell drilling and he wants 2,00,000.00 rupee back from association. Association demanded to produce bills first, he didnt not. The saga contrinued for almost 3 years and he started troubling all the residents by stopping borewell water. The issue reached to police station and they advised to settle within ourselves. Association had multiple discussions and finally agreed to pay him 2,00,000.00 rupees to the member and not received any bills for the work being done. During this time, I had called one borewell company who claimed that he has done the borewell drilling mentioned it will cost approximately 2.5 lak rupees only. So there is a loss of almsot 1 lakh rupees to association. Can we file a complaint on association in socieites of registrar for following improper procedures? I am also a member of the association, how do we proceed further to tackle this problem. How do we recover money from the member who took 3.5 lakh for the borewell drilling work which was suppose to cost 2.5 lakh? Thanks Dhananjaya