Bank reneging on OTS offer

Hello, We had availed a 20 lakh education loan from Allahabad Bank in 2010, by using our house as the collateral. The loan turned into NPA in 2017 and the bank initiated SARFAESI proceedings under 13(2) & 13(4). Since taking the loan, we had paid back more than 16 lakhs, with an additional 27 lakh pending at the time of NPA. Through our discussions with the bank, we were instructed to submit an OTS offer in 2018. During the negotiations, the manager in charge had suggested an OTS offer of 19 lakhs but we were able to offer 16 lakhs. We submitted this offer to the bank, along with 3.5 lakhs advance which was supposed to be parked in a no lien account, pending OTS approval. However, the bank rejected our offer, on grounds that we provide a better offer and at the same time appropriated the 3.5 lakhs in the no lien account towards our loan's outstanding amount of 27 lakhs. When we challenged the bank on this, they accepted it as a mistake and instructed us to give a better revised offer. After further rounds of negotiations with the bank, the new manager in charge instructed us that only an offer for the remaining 24 lakhs would suffice. However, given that the bank had already appropriated our 3.5 lakhs from the earlier OTS offer, we made a last and final offer of 21 lakhs and offered an advance of 2.5 lakhs towards this revised OTS offer, with the remaining to be paid in two installments of 10 and 9 lakhs each. Unfortunately, the bank has once again rejected our OTS offer and told us that will be returning our 2.5 lakhs advance in the coming days. The reason for rejection provide to us is that as per a "new policy", they are obligated to go for the sale of the house and only if the auction doesn't materialize, are they allowed to entertain OTS offers. We have been told that the bank will issue the sale notification in the local newspaper for a period of 1 month and if no one shows interest in the auction, they will come back to negotiations on the OTS. Since the value of our collateral is an order of magnitude higher than the loan amount, we believe that the bank wants to extract every last penny from us and is not acting along RBI guidelines vis-a-vis the OTS scheme. Also, given our incremental offers and the fact that we have been able to furnish funds to the tune of 24 lakhs against an NPA amount of 27 lakhs, we believe that the bank thinks they can push us more and maybe even get not just the entire pending NPA amount but also the interest that has been accruing on it since the account turned NPA. Please advise on what you deem is an appropriate path of action on this matter. Thanks