Chit fraud

Hello sir, I'm J Kumar from Kerala. I would like to ask regarding some chit fraud. Kindly advise. My mother-in-law deposited some money with a woman (name : X) as chit fund. Also she had been a mediator between X and some people for depositing money with X. Now the chit fund had been broken last year and X had gone abroad one morning without informing anyone. X had her own house and it's Power of Attorney had been given to X's brother-in-law. He had sold the house and the money had been taken by himself, saying that X had owed money to him too. Now the issue is - the people are asking my in-law for returning their money, for which she was just only a mediator. This matter had been put up with the Municipal Councilor and she had spoken with X's brother-in-law on behalf of X and her husband in front of all committee members. X s husband assured them to return their money in 2 parts . For an assurance, Councilor & the members had taken two cheques worth Rs. 6 Lakh (Rs. 3 Lakh each) from my mother-in-law as an assurance (because she was the mediator). X's husband had assured to return first installment by Aug. 31, 2016 and 2nd installment by Dec. 31, 2016. Sir, my question is - If he fails to give the money, is my in-law responsible to pay this? What actions can be taken against X, her husband & her brother-in-law? X and her husband are in gulf right now.