SriDhar,
thanks for sharing yr story,a friend of mine situation was the other way round- 1) boy's family denial against the girl. ---2) but now similar (as the boy still considers getting her back ... !)
the boy's family 'no' was- becoz of potentially having to stay separate for 2 yrs (both abroad in two diff countires, girl studying boy working) and later due to astrological reasons. it was fully arranged and later had turned into a kind of love, after chatting everday for almost 1.5 months emails, chats, phone, webcam etc..both liked eachother, both families happy.. girl/boy and ready for the next step, bought tickets to come home to physically see each other too..but somehow the astrological rasifal thing ruined it (though they were yet to see eachother, have meetings between families etc..u know the 'keti herne, keta herne' thing)...god knows if they wud have said 'no' after seeing eachother, but the rasifal thing came into play first. ..........AND the thing stopped right there..no official communication but, it kinda of ended there. (the boy too had shared his reservations about having to stay separet for 2 yrs has an issue..was still thinking..and the rasi thing came..the girl really loved the boy ! and the boy too)
they are stil in touch, chat sometime, speak over the phone, though obviously the talk ends in satarical way of telling both to find somebody better :)

the girl is good. and a loyal daughter too. she thinks the 'no' and its improper communication (at the parents level) hurt her families and even herself...the boy on the other hand 'just believed in the destiny' so accepted the family's decision, after all it was an arranged marriage.

NOW, the boy realizes that it isnt' easy to find a 'good girl' and keeping the rasifal thing aside thinks if he can get her back (and then work on teh 2 yr thing, proly go join her)....there is a good chance the girl will not say no- AS LONG AS teh family goes and apoloiges to her family and starts the talk fresh again.. n the prestige issues comes in. so the boy has to go and talk and convnice the girl's parents first.
and ofcourse get the girl back before she starts to see others !

so somewhat almost yr situation, but the diff is the boy cancelled it first and wants to get her back again ! (BUT going to somebody he said no initiallyo to ???) 

so what do you guys/girls say ?
what shoudl by fren dO ?
is it OK to go back to the girl, once you have alreday refused ? apologize to the family and start over agian ?
will this 'refusing first, accepting later' thing impact in their life later ?
OR
should he find somebody else and marry without thinking too much ?

 hope this helps you to think about yr case. though your seems more of a economic status issue for the girls' parents- who knows..and very possible- that they might have got a better offer for their daughter ..
good luck