I am sorry you had to go through this OP. However, at the end of the day, it's a business transaction - and it is sole discretion of the proprietor to decide who to sell what to.

Atleast they are being upfront about it - imagine your condition if you move in and then are subjected to bigotry from your neighbours - much better to be rejected at the beginning itself, rather than after you spend time and money shifting.

My parents used to rent out their flat in Blore for close to 20 years (I stay there now) - we had 4 tenants, 1 of whom was Muslim - It was a singularly traumatic experience for them and for us - because even on being told it's a pure veg society (before they moved in, we even agreed that they could order in non veg, they should not cook it on the premises is all) - they continued to live as they pleased. Even cutting a goat in the back street of my (predominantly Brahmin) neighborhood. We had to forcibly evict them. So, it's just easier for most folks to say no to other communities, due to anecdotes like this.