Illegal Money lending harrasement

I had taken loan of 8 lakhs at 9% interest rate and 4.5% compounding rate if not paid monthly on time. The loan was taken from friend through bank to bank transfer. The amount was transferred to me from his mother in law and sister in law account. Till date I have paid around 25 Lakhs and all was paid through bank to bank transfer into his mother in law account. He had said that money was given to me by some builder. He is saying that my balance payment is 25 lakhs and I have to pay it anyhow. Other wise that builder will come home and do all sorts of things. I haven't met any builder nor have I received any amount from that builder. Whatever amount I have recieved and transferred is through his mother in law account. I requested him that I don't have any money left to give him as I have already paid 25 lakhs. But he is saying until u clear everything compounding amount and all will go on. What should I do? I'm into clinical depression due to this. I have all the transaction details with me. Please advise.