Flipkart - Fake iPhone delivered by Flipkart

I had purchased an iPhone ** from Flipkart on **th July in exchange for my iphone *, and on **th July I received the product, which was fake. I knew it was fake, as it did not ask for any setup and iCloud log in and the camera was not functioning properly. After some time, it would not even switch on.
I immediately contacted Flipkart customer care to raise a complaint, but had to wait until next morning to speak to an executive as the product status was still 'not delivered' on their system.
Next day, a Flipkart executive from the Social Media team asked me to go to an iCare center and get a job sheet confirming that the product is fake. I took half-day off from my office to get this work done and successfully sent the required document to them the same day.
On **th July my husband and I were on a trip outside Bangalore, the Flipkart executive calls again and assures me that it will be resolved in ** hours. When I enquired about refund instead of replacement, she mentioned that I could get a full refund, and subsequently a return request was placed. We spent most of our vacation time in frustration and in calls with Flipkart.
On **th July, a Flipkart courier person comes to collect the fake product, but rejects it on the grounds of: 'phone not functioning properly'. We tried to explain to him that it is a fake product and that's why we are trying to return - to which he mentions that Flipkart needs to disable checks in such cases at their end, without which he cannot accept it.
At this point, we didn't have a call-back number and had to depend on emails and Facebook messenger to get a call back from the executive. This time, it was a different person and she also assured me that she would resolve this in ** hours. It had been * days already.
Between **st July and *st Aug we spoke multiple times with this Flipkart executive and every time we were assured that the case would be resolved in ** hours. By now we did not have a phone for * days.
On *st of Aug we bought a new phone from a store, which is now double the expenditure for us.
On *nd of Aug finally, another Flipkart courier person came to pick up the product. But this time also, it was rejected on the same grounds!! We tried to again contact the executive who promised that there would be no further delays and now a new person called back and again gave the same fake assurance. At * PM yesterday, another person from Flipkart Return team called to place a new return of the product. He had little knowledge of the case so far and I had to explain to him the whole case again!!
It has been so much more than ** hours (which seems to be the standard resolution time for Flipkart) and we still haven't received the refund. In these past * days, we have lost our original iPhone, lost Rs **,***, spent another **k on a new phone, lost half a day of leave, spoiled our vacation, and suffered mental agony. We need compensation for all this.
Moreover, this is not just with us. In our close circle of friends, we came to know of many such instances were fake products, or sometimes bricks and tiles were sold instead of phone. This is beyond acceptance and needs to be addressed and stopped immediately!