try reporting it to your bank. Since you made the INR deposit, they may help you with a dispute. Explain that you have paid for digital goods and not received the product from seller.
If the seller is questioned, he has to provide proof.
No other way, apart from physically catching the guy and shaking him up.
Well I don't think police or bank will do anything, they don't even know what bitcoin is.
Still give it a try and report him on localbitcoins too Also give him a warning and spread His details in public (paste them on pastebin/pastie.org etc sites).
i have given him warning he is saying he has transferred my funds to usa also not picking up my phone