I have applied for Loan Against Property from Axis Bank (Galleria Market, Gurgaon, Haryana) on 02-Sept-2011.
They have completed the property survery in Septmeber only.
On 13-Oct-2011, I received an SMS saying my loan has been sanctioned.
They have charged me 16,645/- as processing fee.

After continously following-up with them, on 27-Jan-2012 they said that they cannot give me the loan as my actual built-up area is more than allowed built-up area.

Is it correct on their part to give me this reason after 4 months?
If they would have told me this in the first month itself, I would have tried something else and my four months didn't get wasted.

Please suggest if I should file a legal complaint against them and what would my options be.