I have had a similar issue. I put down a deposit on the condition that they arrange finance for me(I am an Indian living abroad), the booking form said that they would take 0% in event of cancellation. However I found out that they rejected the booking form agreement, however they still went ahead and cashed my cheque. I cancelled before they cashed the cheque(it takes over a month for the transfer to happen from the UK bank) however they are still skimming off rs.75, 000 from my deposit.
This amounts to theft, so I am talking to the authorities to start up a fraud case against them. However, I would not recommending doing business with them. The Sales Manager Mr Anil(Bangalore) stated in front of independent witnesses that "as Head of Sales I have decided to return the full amount", despite which they are still scamming me for rs. 67000.