[Resolved]  Travelocity — Hotel Room not given after Confirmed Reservation

We booked a room for 2 pax in Sterling Resorts, Yercaud online through Travelocity for 3 nights and 4 days. The booking was confirmed as shown online(full amount was paid up in front). Called up Travelocity to re-confirm the reservation on which i was told that it has been booked and the room is confirmed. A day before reaching the hotel in Yercaud, somehow called up Sterling Resorts and found that there was no reservation on our name. When called Travelocity, they said they had talks with Sterlings and its all resolved.
The next day when we reached Sterling Resort in Yercaud, they told us that we only have a 1 night confirmed reservation and that we have to check out the next day. I called up Travelocity again and they said they would resolve the issue and we don't need to worry about. But nothing happened and we were asked to checkout the next day. Sterling though said that they can provide me hotel accomodation 40-50kms away from Yercaud which was a crazy option since we had gone to visit Yercaud only! Travelocity on the other hand said it was Sterling resort problem and not theirs!
We left the next day and called up all the hotels in the way back to find if we can find any room empty anywhere. Luckily we found one but it was just for somehow stay purpose!
For this inconvinience, we want to file a consumer case against Travelocity. I would like to get the comments on this issue from you guys as to how to approach ahead.