Make My Trip - Forceful usage of cash over original payment

The hotel normal cancellation policy allows free cancellation till ** hours before check-in time and I had double black MMT membership. I specifically called the MMT support to request that they use the normal hotel cancellation policy for two purposes. Firstly, the normal hotel cancellation would have allowed me to get the refund to my original payment method. Secondly, the hotel cancellation policy already allows free cancellation. So why should I waste my double black membership which allows only * free hotel cancellations? After all, I had paid for the membership not to be used on a cancellation that was anyways free and even better to my original payment method rather than some MMT virtual wallet.
The booking page before I booked had clear terms and conditions that the free cancellation is up to ** hours before and will go to the original payment method. The support agent confirmed that the money would be reverted to my American Express card and not to my wallet on the official MMT support line. Agents name was Sagar Singh and I had called on **th April ****.
However, the money was refunded to my MMT wallet through double black forcefully as I found out later and not to my original payment method. Why should I accept this refund to a virtual wallet when I was promised something else on the phone? This is deceit, fraud, and wrongful withholding of my money and forceful usage of MMT wallet. My booking ID is NH************* and I attached my booking voucher as well as the standard cancellation policy of the hotel under make my trip which is free cancellation till ** hours before.