There shouldn't be any problem as such. Every counselling allows you to withdraw your seat. It is a normal thing as students are participating in multiple allotment/counselling simulataneously. So, they have to leave all seats except theone which they finalize

No the choice is absolutely yours whether to join an organisation or institutions or not. No one has the authority neither its compulsory for you to go with it. Your decision is the ultimate thing. You can even go with the other options as well if you have them. Good luck!