MakemyTrip MMT - Misleading booking terms and non cancellation

I did a hotel booking with MakeMyTrip for Christmas trip to Kerala. Booked hotel White House Munnar. They initially offered zero price block on property and later I had to pay full amount of ***** for booking confirmation. After reaching the property on ** Dec they declined to let me check in unless I paid additional Rs ***** which they claimed as compulsory Gala dinner which hotel wanted to charge on top of booking.
I called MMT customer support from the hotel reception on ** Dec and spoke to * agents. Both of them confirmed to me that there was nothing in my voucher and booking terms that said the additional ***** for Gala dinner is compulsory. Agents confirmed that property could have optionally collected these charges and it was in my booking voucher. It was based on these calls that I gathered enough assurance that I have taken a right stand by refusing to pay additional amount to hotel. I requested them to let me check in but that was not allowed.
I also got another call where agent reconfirmed my booking did not mandate additional ***** as compulsory payment. Initially MMT agents played clever and did not generate any ticket ID for my reference, however after repeatedly calling one agent did give me a ticket ID ending ****. Even this agent clearly informed me that there was nothing in my booking info and voucher which stated that Gala dinner was compulsory, recording should be with MMT as well. MMT continued to chase hotel for refund and did not own any responsibility for this booking fiasco. MMT finally closed ticket Reference No. ***************** : NH************** without any refund.
In my view MMT as travel agent owns the responsibility of having caused this mix up. If they earn margins they must accept responsibility, else trust placed by millions of travellers in making a hassle free travel possible with MMT goes for a toss.