Air Asia — not taking responsibility for expenses due to flight delay of 2.5 hours

I had a flight bangalore-delhi on the 3rd of october that was scheduled for 23.50. Some hours before the flight they informed me of a delay of about 1 hour. I had a connecting flight from delhi to amritsar at 5 in the morning, so that was still alright. However, when i reached the airport i found out that it was futher delay another 20 minutes. Then another 20 minutes.
As a result, we left bangalore at 2.30, which was supposed to be the arrival time in delhi. We reached delhi at 5 am exactly (Landed at 4.45, then the time to open the gates, get in the bus to get to the terminal, etc., it was exactly 4.59 when i set foot in delhi).
My connecting flight left on time at 5 am and i had to buy a second flight ticket that costed me 3574 rupees. I tried to place a complaint with air asia then, but they directed me to their site.
I placed a complaint on the website regarding this. I further explained that the flight ticket i bought with them that had to leave at 23.50 was a very expensive one. If i took that expensive one, it's because the timings are suiting me, so why do i have to still pay that much for a flight that didn't reach on time?
I didn't ask for a full refund of that flight ticket, but for the amount that i had to pay extra (3574 rupees), as it was their inability to fulfill our contract that lead me to that expense.
They replied stating that they acknowledge what happened, that they informed me in advance of the delay (Which is not completely true, as they said it was 1 hour delay, and ended up being 2.5) and that "further on this compensation as airasia does not have any process like this."
If we have a contract, they should be expected to abide by it and to take responsibility of monetary loss caused by them.
I want a refund of 3574 rupees by air asia.
I attach the receipt of the 2nd flight i had to buy delhi-amritsar, as well as the one i missed because of them.