Tenant damaged and replaced wrong color carpet - how to handle

[Kiran K.]

Tenant moved out and one of the rooms he replaced the carpet as his daughter damaged it, but the problem is carpet color is not matching or close match with rest of the carpet in the house.

I got quote for carpet (close match to rest of the house) and labor and ready to replace, but new tenants moved in and they are not willing to deal with the change, they are fine with the carpet.

What kind of charges I can put on old tenant? Old tenant is asking for his carpet back which he wants to use in his new house if I'm charging his for carpet replacement, but new tenants doesn't want change.

I want to keep monies to replace in future after new tenants leave (after their 1 yr lease), but I can't return old carpet right away. 

What's course of action, what steps do you recommend on how I should deal with this?

[John Underwood]

old tenant replaced carpet with new. New  tenant is good with carpet and does not want it changed.

Looks like things worked out and you can't withhold deposit since carpet has been replaced escpially if you can't return the brand new carpet.

You can't keep the carpet he provided and keep his money too.

This should have been worked this out before you allowed a tenant to move in.