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Hello aspirant,
A candidate can apply for both All India quota counselling and state quota counselling for medical courses like MBBS BDS etc. If you get allotted any college during the first round of All India quota counselling and then get better college in state counselling and want to go with that you can surely do that.
As far as I know there is almost nil or minimum penalty fees if you leave any government college during counselling process. But for this information kindly go through the guidelines during admission process.
Hope you get some clarification.
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