Apple India — ON/OFF button of my iphone is not working

Address:Bangalore Urban, Karnataka

Hello, on/off button of my iphone is not working. When i visited authorised apple service centre they said you have to pat rs.20500 even my iphone is under warranty. They said that pay rs.20500 for replacement of your iphone. Why should i pay rs.20500 if my iphone is still under warranty? And if i pay rs.20500 then what is the meaning of warranty?
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