ICICI Bank not complying with rules

I and my wife own a property. We have a house loan from ICICI bank and my wife is the main applicant and i am co borrower. Since my wife is not paying the loan she decided to relinquish her share in the property. We contacted the bank to know if we can execute the relinquishment deed and if her name can be removed from the loan structure. after getting verbal confirmation from the bank only we executed relinquishment deed requesting the bank to remove her name from the loan structure. Accordingly indemnity and undertaking document was signed by my wife clearly requesting the bank to remove her name from the loan structure. After 6 months I noticed that the loan is still in my wife name,we requested the bank to remove her name from the loan structure. Bank officials have mentioned that her name can only be removed if I give them encumbrance certificate. After giving them the required documents I was told that there has been some miscommunication from their side and my wife name can’t be removed from the existing loan structure and a new loan has to be availed. There is email communication regarding this conversation. I feel I have been misled by the bank, kindly advise how to proceed on this.