Hello aspirant!
Hope you are doing well,

It is clearly mentioned in the official notice issued by MCI that- "( if a seat is allotted to a candidate in Round-I but the candidate do not join then the allotted will forfeit the security deposit of 2 Lakhs deposited with MCC/DGHS).
Hope this helps!

For more information refer to the official notice issued by MCI https://www.mcc.nic.in/MCCSS/Documents/RevisedFAQsSS882019.pdf