Greetings!

No your admission will not be canceled, it never will be. Hostel allotment is completely different from admission process, therefore there is no way in which they will cancel your admission.

However this doesn't mean that there will be no consequences, they will inevitably cancel your hostel allotment, and you may have to stay outside, which for first year students is going to be difficult, specially if you don't live in that city, because then you will have no way of finding a good house nearby.

Now there is one more thing I would like to mention, more often than not even if your are not given room initially as you didn't paid fees, there is a chance that if you approach the warden, he will allot you a room, VIT or any other college for that matter has some extra room as no college is 100% full ever, so for VIT it makes more sense to allot it to someone rather than letting it sit empty, so yes they may ask you to do a bit more paper work, or may ask you to pay fine, but if you ask warden he will most likely allot you the room.