Recovery of develoment fee (Building construction)

I am a resident of Goa and have an ancestral house which needed to be reconstructed. Accordingly the plan was presented and license was sought for construction of a building on the land where the same ancestral house is situated. subsequently inspections were carried out and i was instructed to deposit what is called a development fee to grant us permission. i deposited the amount through chalans and copy of the same was submitted to the development agency( Government of Goa). Even after three years license was not granted and the project since became commercially infeasible. i subsequently approached the agency and asked for refund of the amount deposited as license was not granted. The agency refused saying that license has not been collected by me. they are saying that license has not been refused. but they have not sent me any letter regarding the grant of license. now they are asking me to take the license but i am not interested and i want to recover the money along with interest due on the amount. how can i proceed? are there any precedents where such cases have been fought?