Amazon India - Amazon India Refund not issued even though item was returned and received at their end

Had placed an order for a
Acer ED***QX **.* Inch (** cm) Full HD ****R Curved VA Panel Backlit LED and LCD Monitor (ORDER # ***-*******-*******), which was returned as per Amazon India's return policy.
However, even though the item has been returned and received at their end (as confirmed by Amazon), they refuse to refund the amount saying that we have received incorrect or wrong item. (Email from Amazon India - We are contacting you about the return of the ITEM from your order ***-*******-*******

Our Returns Department advised us that they received the wrong item . We confirmed the ITEM from ***-*******-******* was in the box given to CARRIER at the time it left our fulfillment center.
We are discarding the INCORRECT ITEM that you sent. )
After being an Amazon customer for a decade and spending several lacs on products just this past year, it's bizarre that the company thinks that I have returned the wrong product and am asking for a refund.

The delivery agent who came to pick up the item checked it at my doorstep before leaving with it. If the item was incorrect, it should never have been picked up by the delivery agent in the first place. But it WAS picked up, because he checked and the item matched what he was supposed to pick up.
So at the end of story my money gone and item also gone ***% Loss to me