Hello, 

Yes if you get a college in Special round or spot round of REAP after submitting the fees in college alloted to you in upward movement round, your fees will be directly transferd by REAP from one college to another. You don't need to worry about the fess until and unless you get seat by REAP process.

Yes dear this is possible but this is will not be going to happen because if you get a college in any of the round then it will be best among your filled choices.You will get the best college already if you have filled choices correctly.The seats vacant after all the rounds are filled in special round.And yes the fee will be refunded after any round but after filling a withdrawl form.You will get your refund from the institute you get after upward movement.So,if you participate in special round then you will have to pay another fee and that will be adjusted in semester fee.

Hope this helps.