Amazon India Limited - Package not delivered

I ordered a Tp link router during this recent sale from Amazon India. It was promised that I would get the product by today(Oct *) as I am prime member. But I got a text message from Amzon by saying that the product has arrived early and will be delivered by sunday(Oct *). I called up the delivery person to enquire the time he was going to deliver that product. But the person seemed to unsure of the time. On the same day evening I got an automated call from Amazon by saying that my product delivery got cancelled and asked me whether I cancelled the product from my side. I responded with no. After my response, the same automated call let me know that the product delivery will be re-attempted within next ** hours. Till now it was fine. But when I checked my order status on October *, I got to know that the product was going back to the seller because I refused the product. After knowing this, I checked with the amazon support representative via chat where I got to know that the product was damaged hence the product got returned. Also, the representative suggested me to place a new order. I requested the representative to make a replacement as it was an electronic item. But he hesitated to do so. Recently, I checked the product I odered in Amazon, it got costlier by then. Moreover, I won't be able to get the bank discount also for my new order. My question is, if it was not my mistake why should I place the second order, Amazon should place a replacement order. Moreover, why money is on hold, shouldn't I get the refund instantly.

Please check the snapshot of the representative from Amazon support.