Is there forfeiture clause in your agreement for sale ?kindlu clarify 

2) if there is no forfeiture clause you should refund the advance money received and cancel the agreement by mutual consent 

Deduct 10% from 5 lacs and refund balance

This takes care of your loss of interest, buying opportunity and mental agony

Don't refund him any money. Rather serve a legal notice upon him, for breach of contract. 

1) You have to go as per termination clause which is mentioned in Agreement to Sale.

Did you sold the property or engaged in to execute a sale agreement? If it is a sale agreement, and buyer did not complied the terms in the agreement then you may send legal notice to buyer to inform that you are withdrawing from the contract. As per your query, you can claim damages from buyer’s earnest money and refund the balance amount.

Refund the advance amount with some deductions like cost for 6 month interest and your losses.

Further what is the termination clause in the agreement.

1. IF there is a clause in the Agreement about any penalty or interest, THEN you are entitled to deduct the same and refund the balance. OTHERWISE you will need to refund the full amount.

2. A dispute can be created by you and you can refuse to refund the token amount and let the opposite person go to the court, where he will get no relief.

Keep Smiling .... Hemant Agarwal

1. As per the information mentioned in the present query, make sit clear that you got into an agreement which talks about the payment of remaining amount within a fixed stipulated time, but he failed.
2. It is immaterial as whether why he has not been able to pay, what matter is that he has failed to pay the rest of the amount.
3. And I believe you must have put a clause of non refunding or reducing with certain amount to be cut down, if he fails do pay within a stipulated time mentioned in the agreement.
4. If you have that condition there then need not to worry, other wise would be able to advice you more precisely, once go through the agreement.

Hello,

after deducting certain amount of losses youmay pay the money.

was there any exit clause in the agreement or was there any clause with regards to the refund.

regards

You may send him a notice for forfeiture of the earnest money.

regards 

The revocation time for agreement of Sale is already expired. It is the duty of the seller to issue a notice. 

Legally you can sell the property to another buyer if the agreement contains a forfeiture clause and as per that the other party must have committed some default thereby giving you the right to forfeit the advance amount. If this condition is satisfied you can go ahead and sell the property to another buyer.

Dear Client,

IS there any default clause that if no payment made in time, forfeiture of advance. IF yes than no need to return or if not than can deduct the penalty/interest and return rest. But first ask him if he is ready for same than only return.

There is no question of paying interest or losing interest in such cases.

The buyer can approach court with a  suit for specific performance of contract within 3 years from the date of agreement even if the time stipulated was only 45 days for enforcing the sale agreement.

If he is demanding the refund of booking amount, you may better do it to avoid further legal complications as well as more financial losses by way of litigation expenses.

you need to talk to him and come to amicable settlement. if you have some condition in the agreement of sale stating that the advance amount will be forfeited if the aforesaid loan was not sanctioned then you can keep that amount otherwise you need to adjust your losses and refund the money.

Dear Sir,

You get issue a strong legal notice and close the matter.