José Ramon Sandoval had stated his side did not deserve to lose against Madrid.
Benzema put Madrid in front in the first half, but an equaliser came for Granada in the second half.
Only for Modric to win it for Madrid with an 85tg minute strike.
Despite the defeat, Sandoval was thrilled with the effort from his side and believes Madrid will go home knowing they did not deserve the three points.
“It bothers me a lot because of the effort that the team put in,” Sandoval said.
“The side did not deserve what the final score showed. We have had two games against Madrid in which we did all we could but were unable to score enough.
“The ovation we got from the crowd gave the team a lot of spirit because they know how much effort the players put in, and that’s all you can ask for when you play Madrid.
“They’ve come from destroying other teams and we made it difficult for them. We lost because of a goal from outside the box – a bit of genius from a player.
“With Madrid winning, they will go home knowing they did not deserve to win.
“A draw would have been>