Hey!

If you fail in nay subject in engineering college in first year/semester the the college will definitely give you atleast one more chance to qualify that exam again. But as per your query, I guess you are asking to leave the college if you get fail in 1 st semester exam. Most of the colleges have fee reimbursement policy and it varies from college to college. And the maximum date to get fee reimbursement is in one month of admission, in which college will deduct some amount.

If you are asking about the scholarship which yoy get during the admission (fee reimbursement) for your good score in exam (12th/entrance exam) then to continue such scholarship you need to be amongst top students of your branch otherwish your scholarship will be dismissed from next semester.

Hope I answered your query, thankyou!