Hello aspirant , hope you are doing good.

So, in you get a college in 1st round of AIQ counseling and you freeze it and opt for upgradation in the second round but don't get any colleges , and meanwhile you get a good college through state counseling and you want to get admission in that, you can definitely do that and you won't be fined for the same. But you should also know that you won't get back the security deposit money as well, your seat will be considered vacant and not cancelled.

If you have more such questions that you want to get answers for about NEET counseling, you can get them here :

https://medicine.careers360.com/articles/neet-counselling-faqs

Hope this helps you. Good Luck !!