Rental agreement not renewed & owner not refunding the reposit

I started hunting for new rental house almost for 12 month but didn't find suitable & good house, finally got one in July'14 last week, so informed my house owner on 2nd August (its verbally & didn't gave any written letter, notice period mentioned as 3 months & I've signed the agreement blindly, its my mistake)) after paying the token advance to new house same day that I will be vacating the house by August month end & I did so, On September 1st I got the house painting done after asking the owner preferred color, paint company & cleaned the premises on my own expense. Rental agreement was made on 30th March'2011 for 11 months by paying advance of Rs.60k, but for next year the agreement is not renewed & there was no discussion happen on agreement renewal & hike in rent for second year. But 3rd year myself decided to give 10% hike along with previous year & informed the same to Owner, same was paid thereafter. In between Owner wanted to do some alteration job in our house bathroom & also other tenants (fixing new water pipes & tiles ) which was not requested by me & it took 4 weeks to complete the job (owner committed to finish the work in a week) & am a family man having a small kid forced to stay in some body's house. I spoke to owner that I will pay only half month rent since they kept me out for 4 weeks, didn't stay in their house & struggled a lot with the family, but owner didn't agree for half month rent instead talk some stupid logic. So I paid full as I didn't want to get in to heated argument for silly reason. Now on 1st Sep'14 , after I got the clean painting job done owner complaining that painting work is not good & nobody will come to stay in this house & not refunding my advance amount by giving some weird reasons which is very rude & I didn't understand why they talking like this. I just wanna know since the rental agreement is lapsed 2 years back & no renewal done Can I insist owner to refund the advance & take back the key. Pls suggest.