Akshaya, though it is a Government Quota seat, because the seat was offered in a Private College, the penatly might be huge. This is because the seat will be vacant for the rest of the duration of the course and there is no direct admission to 2nd year to fill the vacant seat. Most Colleges demand Candidates to pay the entire fee of the course. Infact most Private Colleges make Candidates sign a NOC certificate pertaining to the same. If you have signed such a document, then you have to reach out to the College Administration to sort this out. EIther ways the final call is taken by the Administration and so they decide the penalty or the seat resignation fees.