Legal Question in Real Estate Law in India

my wife has a plot in bengaluru for which a deal has been done yesterday and teh token advance of Rs.15 llakhs has been taken. There was a clause in the agreement that both sides need to pay penalty of 25% on the advance whereas at the time of discussion it was orally agreed that 25% of penalty on the initial token of Rs.5 lakhs given to me by cheque on 20.12.12. Subseqently, both in the original and copy i made changes that 25% penalty is to be paid by both the sides only on the initial token of Rs.5 lakhs (i.e.Rs.1.25 lakhs) and the addition in the last page is signed both the buyer, and his brother and from this side my wife and self as witness. The agreement was initially was to be made on Rs.4000 stamping but subsequently made only on Rs.500 stamp paper by the buyer.

Now can we cancel the deal by paying him the agreed penalty of 25% of initial advance of Rs.5 lakhs (I.E.1.25 LAKHS)? Kindly advise how this is to be dealt with in the event of any arguments.

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