There will be a termination Clause in the Memorandum Of Understanding. If it is not there then you’ve to execute another agreement. In that agreement you have to mention the Memorandum Of Understanding and record that the Memorandum Of Understanding is terminated.
In your case, You can also cancel the Memorandum Of Understanding as per the Termination Clause mentioned therein, return the part consideration which is the essence of the Contract. You are not liable to pay the excessive amount which the other party demand subject to verifying your Memorandum Of Understanding Termination Clause.
If the agreement has been registered then both parties must be present for its cancellation also. An agreement made without passing any consideration is actually void. … If the agreement is sans a cancellation clause then you can issue a lawyer’s notice to the seller to cancel the existing agreement.
Memorandum Of Understanding is not binding to execute unless it shaped as formal agreement and subjected to full fill all terms and conditions enunciated. So you may intimate other party by written MOU revoking letter giving reason as that terms are not full filled so Memorandum Of Understanding is being revoked and return the money so taken through bank draft.
Reference: Indian Contract Act