1. No, you aren't liable to refund the token amount if the buyer has cancelled the deal as per his own sweet will. It follows that you aren't liable to pay any extra charges either. 
2. Rather you have every right to sue the buyer for specific performance of contract ie to execute the sale deed with you; and on his failure to do so, to pay you compensation. 
3. I'm willing and prepared to sue him as your counsel (advocate). So speak to me on phone consultancy option here at kaanoon

Dear Sir,

Token amount means an advance amount or part of sale consideration amount given to the vendor by the buyer as an assurance for the transaction.

Mutually settle the matter but there are no legal consequences unless sale deed is executed. Exchange of token money does not create legal rights in the property. It only signifies an intent to buy.

The amount paid varies according to the size and location of the property and also as per the terms and conditions laid out by the seller. If the seller backs out from the deal, the buyer may file for a compensatory suit and demand that they get refunded the money they lost in the transaction.

No The seller can't be held responsible for cancellation of deal from buyer side. If you have made Agreement to Sale. than follow the terms and conditions.

buyer cancelled deal you are not liable to pay extra charges incurred by him 

2) you can forfeit token money if there is clause to that effect in agreement for sale 

Any agreement to sell executed with buyer ? Well, deal was locked by him by paying some token amount due to which you unable to contact other parties and rejected offers, so actual loss faced by you.

Tell him to compensate you against losses. No refund.

Dear Sir,

Yes, the token money as it is called is committed assurance to enter into the verbal deal agreed between both the parties and upon backed out by purchaser this is forefeited by the seller.

whereas,when a written deal/agreement is signed for sale purchase of property, a small and fixed amount is paid and is called earnest money and a receipt is issued for it which is adjusted towards the deal price upon finalization and in case cancellation this is forefeited being the expenses towards cost of documents and other incidental expenses.

I have already explained to you the course of action. Speak to me on phone consultation for further guidance

If you want deal you go ahead file suit for specific performance against buyer 

in alternative arrive at amicable settlement with buyer wherein no further money is payable by you 

It's basic understanding between the parties of agreement to return the amount or retain it. If there is nothing in agreement there is no law which speaks about the same. In general parlance if the buyer fails to buy the same seller retains the token amount. If seller refuses to sell its his duty to return the same

You can not be held liable if the deal has been cancelled by the buyer and there is no fault from your end. 

you may also forfeit certain amount 

Of MoU does not talk about the cancellation clause then return the money that he has paid to you but you are not required to pay any further amount 

issue a legal notice for cancellation of the agreement for breach of contract and seek damages on the entire consideration amount. Generally when the buyer back out of the deal the entire token money is forfeited by the seller.

Consult a local lawyer and initiate legal action against buyer.

1. IF the Buyer has himself cancelled /revoked the Deal, THEN he loses all rights for any type of further demands or claims and on the contrary becomes liable for Breach of Trust & Other losses to the Seller party, for various losses /delay on the deal.

2. You can serve him a Legal Notice for your losses and request him to honor his deal. IF you are getting another deal, THEN it is advised to forget this Buyer party and his illegal demands /claims, since legally buyer has no rights, till he signs the agreement.

See if there is no clause in agreement to.forfiet the amount.you can refund same.

See he is not entitled to any extra amount.

See you can refund the amount and can enter into a cancellation agreement.

The buyer's demand are unjustified and illegal, it may not be valid if he resorts to approach court.

The seller may deduct a sumo of rupees towrds the administrative charges and refund the balance.

The seller is not liable to settle the amount incurred by the buyer to obtain loan amount from bank.

As a seller you can deduct the administrative charges towards the said agreeent and then execute a joint cancellation deed along with the buyer directly.

Than your side is right no need to pay extra amount to him.

1. Yes you have to refund the token amount if their is no clause regarding cancellation of agreement.

2. Buyer cannot hold you accountable for refund of money with interest because cancellation of deal was done from his end. 

1. As per the information mentioned in the present query, makes it clear that the buyer is asking for the refund of token money and also some extra amount what he may have spent on approval of the loan.
2. I would like to inform you that he would be having al the right for the refund of money if he not, but the seller would have refused to execute the MOU/ or refuse to sell.
3. Though there should have been the cancellation and it’s consequences by fault/ or end of either or the party, but as it has not been there then you have both the options either to refund after some deduction or not to return at all as he is at fault not seller.
4. Because in the absence of the refund clause also seller has suffered the loss as otherwise he would have sold it to someone else and got some profit over the amount also.

Normally the token amount is never refunded because you waited for him and didn't talk to anyone else. Therefore do not return it.

Don't return it. Also there have to be such an emergency which you can see then you may return it.