Indian Railways — refund of a waitlist counter ticket

I had a waiting list 2ac ticket travelling from hyderabad (Begumpet station) to sholapur (Maharashtra). My ticket did not confirm and when we reached the station of boarding (Begumptet) i was told that if the ticket is not confirmed we had to travel in general compartment. As i was travelling with my family and kids we decided not to board the train and cancel the ticket. The departure time from my boarding station was 8:45 pm and i went to the ticket counter for cancellation at 8:00 pm. The railway employee on the counter adamantly declined to cancel the ticket which as per her version needs to be cancelled only from the originating station (Nampally station) of the train if the ticket needs to cancelled in between 4 hours and half an hour of starting time of the train. As a layman i really do not know the rules of cancellation but after some research i found out that the ticket can be cancelled at any station before half hour of starting time of the train from the originating station without any deduction (Other than a nominal amount) if the ticket is not confirmed.

My kind request to the indian railways is that kindly do not dupe people for their money by giving them wrong information which they are not aware of at a point in time. It is very basic that if the ticket is not confirmed the amount needs to be refunded but due to the adamant and disgusting behavior of the railway employee which i could not stand in front of all the public waiting in the cue i had to just shut my mouth and walk away from there without arguing further.

I am not asking for any refund even now but kindly try and bring a change to your services and the behavior of the employees working for indian railways which jeopardizes the righteousness of the whole system.