Flipkart — Product undelivered and refund is not initiated

Address:	Hassan, Karnataka, 573201
Website:	www.flipkart.com

I placed an order with flipkart by paying inr 8490 through emi using credit card. The product was arrived on destination city within 3 days on tracking but never delivered. On dropping a mail, i get a response asking me to wait for 12 more days. Well, i did. There has been no update in the tracking system until the end of 12 days. After waiting for 15 days, i get a mail from flipkart saying that the product is cancelled and the refund shall be initiated.
I get no good reason for the cancellation. Now the tracking system says that the refund will be initiated once the product is picked up from me whereas the product was never really delivered to me.
Apart from the pathetic service and annoyance of following up without benefit, below are the losses incurred.
1.) i paid via emi and the refund will be made after my billing and i need to pay the interest and emi cancellation charges for no fault of mine.
2.) i followed up with flipkart and logistics via mails and calls several times and each time i get unsatisfactory responses and finally did not reap any benefit. All i needed was the product i ordered.
3.) i explicitly mentioned in the mail saying i do understand that these kind of exceptions happen in the business. All i need is proper update either via mails or the tracking system in their website (Which even now is showing wrong details).
After putting forward all these points, i get a response from flipkart saying it shall not bear any losses happened due to credit billing or emi which i am least concerned as it was my mistake trusting flipkart and i am paying for it.
All i need now is the refund of my originally paid amount of inr 8490.