Signed Bank checks and promissory notes stolen

Hi Good Evening, First of all i would like to thank you for taking time, reading and replying to my post. We have been running a granite factory in India since 2011 as a sole proprietor based, in that we have hired one of my friend as a factory manager. He has been managing a factory with trust so we have given him all the signed checks so that he can draw the cash from the bank whenever it is necessary to take care of factory expenses. This factory is on my cousin sisters name and she is the one who always signs the checks and give to my friend. Also whenever we have lended money from my friends and relatives then this guy ll go and give the promissory notes on behalf of her and get the money, or else when we repaid the payment to these lenders then he ll go and collect these signed empty checks and notes. As you guys know we simply give signed notes and checks bcz of trust worthy to these lenders. Since he is my friend we didnt put him in any payroll but we have been paying his salaries as a cash. Also since he is friend and we trusted him, he has some of our signed personal checks to draw the cash for my family personal needs. I also wanted to mention one more point here. I dont live in India and only my cousin sister lives and manages the factory. Since we were not running the factory well and getting losses then we have decided to lease the factory and we have leased it to our neighbor, my friend left to his village. During this process, my friend didnt inform to either of us and he took a signed (cousin sister) empty promissory note and a signed empty check(firm one), also my wife's personal check to a finance or third party lender and took 3 lkhs. Now he has been threatening us, and saying that you guys have to pay 3 lkhs to these finance guys else they are going to court. Also we have never seen who are these financiars and also they never called us even when they are taking our checks and promissory notes from my friend. So in this scenario, what are all my options.