Next step after submitting cancellation application

We had booked a flat in August, 2012. Booking was done on the basis of agreement and the amount paid was INR 250000. In the agreement, the builder had added a clause that "If he is unable to give the possession by 31 May, 2013". Then he would pay the interest till the date of possession. Until 2 years he kept ignoring our calls. When at times he would receive them he would say, "his papers from the DC are not clear". December, 2014 he offered us an alternatively very badly constructed flat with also a poor location. We refused. Now in January 2015, he all of sudden said that the papers are clear and asked us to pay the remaining amount ( INR 150000) for registration. He also offered us the chance to back out and asked to reply back within 2 days. His attitude of dealing in all these days would always shoot up our blood pressure, so we decided to back out. We submitted an application and have a copy of it with his signature. Now what is the next step for us to get our money out of him and what legal points do we have to take care of.