You have strong reason to drag E-Bay and the seller to the Court., Just send a written notice to the E-Bay and to the Seller via email or registered post, mention all the details in it and ask them for the Refund + Damages + Interest with in the mentioned time in the notice, wait for their response and revert us back.
Note: Keep all the copy of Complaint, Notice and the registered post slip, this may help you if you need to knock the consumer forum.
For notice reference Visit: Notice before filing consumer complaint



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