Agoda - Hotel booking confirmed and paid but hotel is refusing the booking

I have made booking for Arc valley mahabaleshwar through agoda. full amount has been paid and agoda is showing booking to be confirmed but hotel is calling me and telling that the booking is cancelled. Is this the way agoda works. They are waiting for the hotel to reply but hotel has told me they will not answer agodas call neither reply to emails as it's against their policy. Agoda is not getting back to me.i have already made holiday application at workplace which is not cancelable now. So if agoda is not able to get the hotel they must provide me with some other equivalent hotel or refund me the amount along with compensation for my leaves which I have lost.