That's how it works in counselling right? on the basis of the rank, seats are given to the people present there.
I don't understand why do they want to keep 5K in case of withdrawal. Every institute keeps 1000 rupees.
Every student who gets a seat there will have to pay the deposit. And the call letter does not guarantee admission because the number of people called is more than the number of seats. So seats will be given on the basis of who all are present there at the time of counselling and their ranks.