Hello Jaismeen

Yes it will be refunded if you back out from the counseling. The condition is that if you keep on attending the counseling up till mop up and still don't get a seat you shall get a refund in that case only.

FAQ under MCC : Do read, 

The security fee will be forfeited if the candidate who has been allotted a seat in the second Round and Mop Up Round of DGHS does not join the respective institution during the second round/ Mop Up round of counseling conducted by DGHS/MCC. Also the security amount will be forfeited in case the candidate gives wrong information at the time of registration on the basis of which a seat may be allotted and later cancelled by the Admission Authorities at the time of reporting.