Agent Asking for Brokerage amount even after cancelling the deal

Dear Client,

In your case, both the owner's refusal to return the advance rent and the broker's demand for full brokerage despite cancellation raise legal and ethical concerns.
Generally if there was no written agreement or it didn’t specify that the advance rent is non-refundable, then the owner cannot legally forfeit the amount. Under Indian contract law, advance rent is typically refundable unless it is stated otherwise in the rental terms.Since the deal did not go through, demanding full brokerage is not valid.
However, if you had signed any document with the agent that clearly states non-refundable brokerage upon deal finalization (not execution), they might have some claim but only if such agreement exists in writing.

Now at this juncture what you can do
Ask the agent to show any contract or agreement supporting their claim. Refuse payment if no such agreement exists. If they harass or threaten you, file a police complaint under harassment or cheating under IPC Sections 415/420.

Take help from any advocate for legal steps.

Dear Sir,
It is a small issue you may resolve the same by approaching local leaders or jurisdictional Police Station. It seems you have not at all entered into possession of rented house and not at all used the same. However, you may agree for deduction of 5% to 10% from the advance amount paid by you for the inconvenience caused to the landlord and also similar amount to the broker for the efforts put up by him in finding out a suitable house for you.

Dear Client,
Your query suffers from a lack of information or insufficient information. Your query does not disclose whether any rent agreement was executed between the flat owner and you before the payment for one one-month advance rent. A dispute between a Tenant and Landlord is resolved under the state-specific Rent Control Act or the Premises Tenancy Act, under which a Rent Controller or Addl/Dy. Rent Controller is appointed to deal with the dispute arising out of a rent/lease agreement between the parties. In the given scenario, serving a legal notice to the Landlord/flat owner, you can file an application explaining your grievance against the arbitrary and unethical action of the flat owner before the concerned Rent Controller appointed under the Maharashtra Control Act, 1999, to resolve the issue legally and amicably. As regards the demand for brokerage from the broker, be informed that after the enactment of the Real Estate (Regulation and Development) Act, 2016, all real estate agents/brokers are mandatorily required to register themselves with the RERA under Section 9 of the Act and the functions or activities of all real estate agents/brokers in the real estate business are regulated under Sec.10 of the said Act. Therefore, serving a legal notice to the Broker, you can file a complaint against the broker over unfair trade practices before the RERA, seeking appropriate relief in the matter. If required, consult or hire an Advocate to navigate the issue in the right way.