RBL Bank refused my payment before the gold loan auction, then asked me to buy my own gold back from an outside vendor. Is this legal?

I need genuine legal advice and guidance.

I had a gold loan with RBL Bank, which eventually became an NPA. Before the scheduled auction date, I visited the branch with the intention of paying the entire outstanding amount and closing the loan.

Instead of accepting my payment, the bank employee told me that my account was under a "hold" and, because of that, the loan could not be closed. I was specifically asked to come back after around 10 days.

When I returned as instructed, I was told that my pledged gold had already been auctioned and that nothing could be done.

What happened next shocked me even more.

The same bank employee allegedly advised me to purchase my own gold from an outside vendor by paying additional money outside the bank.

I have video recordings of my conversations with the bank employee. According to my understanding of those recordings, the employee acknowledges that:

I had visited the branch before the auction to close the loan.

I was told the loan could not be closed because of an account hold.

Later, I was advised to buy the gold back from an outside vendor by paying extra money.

I have repeatedly asked the bank for:

Auction Notice

Auction Proceedings

Sale Details

Other auction-related records

However, the bank has not provided these documents.

At this stage, I am considering filing complaints with the RBI Integrated Ombudsman and pursuing legal remedies.

My questions are:

Can a bank refuse to accept repayment before a gold loan auction because of an "account hold"?

Is it lawful for a bank employee to ask a borrower to purchase auctioned gold from an outside vendor?

What legal remedies are available in India in such a situation?

Has anyone experienced something similar?

I am looking for serious legal guidance. Thank you.