Update on the matter. After the dealer as well as the bank person dodged my calls great number of times from saturday, on monday a person from the dealership called, saying that this mistake is not possible from their side, and hence i should deal with the bank myself. This was too much, as I didn't contact the bank in the first place, but it was the dealer who told me the scheme.
On tuesday, i.e. yesterday, I paid a surprise visit to the dealership at 2.30pm. After 10 mins, surprisingly the manager as well as the bank person arrived at the same time, they discussed the matter amongst themselves, debating whose fault it was. FInally it was decided that my loan will be cancelled and a fresh one will be issued at 0%.
My contribution in whole above discussion was nil. I was just sitting there, watching the two gentlemen discuss my case, wondering why the hell my presence was needed in the first place.
I got a call from delhi from Suzuki, enquiring about the matter, as I emailed them too. I told the matter fully and also emailed them the same. I got the reply that they will take the matter ahead with the dealer as well as the bank.
So finally, it seems the matter will get solved. I will update the community on the same. Thanks for the support guys