Sounds like a clear scam - a combination of pyramid scheme and an adaptation of "mail-in rebate" (trying to make your refund as troublesome as possible).
They provided merchant's contact number too. Its busy right now. Will let you guys know once I talk to him.
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Talked to him. He said no need of coming to my place, server is down. Will be up and recharges will be made within 15-20 minutes. Lets hope for the best.